UKIE: UK games market reaches £8.7bn in 2025

The UK games market reached £8.7 billion in 2025, according to UKIE’s annual consumer games market valuation.

Software sales grew 7% to £6.03 billion, and digital console sales rose 9.2% year-on-year to £2.49 billion. Hardware sales increased 3% to £2.17 billion, supported by the launch of the Nintendo Switch 2 in June 2025.

The mobile segment grew 7.9% to £2 billion, with monetisation improving across all business models and app stores despite fewer downloads.

Sales of game-related film, TV, and soundtracks increased 70% to £159 million. Toys and merchandising rose 43% to £333 million year-on-year.

Film adaptations generated £77.9 million, led by Sonic the Hedgehog 3 and A Minecraft Movie. The latter became the UK’s highest-grossing film at £56.8 million.

The report also ranked London as the world’s third-largest hub for developers, after Los Angeles and San Francisco.

Despite market growth, UK games industry employment is declining according to TIGA’s recent Making Games in the UK report.

The trade body reported the “most severe downturn on record” with employment falling 4.5% year-on-year.

From May 2024 to September 2025, 491 companies cut 3,655 full-time roles, while 513 studios added 2,571 positions. The total UK workforce declined from 28,516 to 27,347.