Even though video games have been getting more popular over the years on their own, the COVID-19 has clearly accelerated gaming's popularity, particularly as millions of people have been confined to their homes, many under furlough schemes, with a lot more times on their hands. Earlier this year, it was revealed that the games market in the UK had reached a milestone, breaking previous records, and now it appears as though the industry is growing at a staggering rate.
A recent report from Scotland has said the market value for the UK has reached £7 billion, around $9.7 billion US, in 2020, which is nearly 30% higher than in 2019. The increase is shown across both physical sales and digital sales, with revenues for software alone up by 18% to £4.55 billion, which is about $6.30 billion US. This also represents the first time the United Kingdom Interactive Entertainment, a non-profit trade association firm that works specifically within the UK, has provided a breakdown across PC, console and mobile sales.
The report also indicates that hardware experienced a record year, particularly in light of the launch of the new generation of consoles late last year, as well as people upgrading their systems. Of course, the latter is still a troublesome point for some as new GPUs continue to be elusive with ongoing shortages expected to go into 2022, but that doesn't seem to have stemmed the overall increase in general PC component revenues. A brief overview of sales between 2019 and 2020 is shown in the graph below.
In terms of console sales, a spokesperson for GfK Entertainment, a consulting firm for consumer products, said revenues for the Nintendo Switch grew "almost 300%" during the first lockdown period last March. This could explain why the Switch has become the second best-selling Nintendo console ever. The spokesperson added that sales of the PS4 and Xbox One also experienced a boost, and despite low supplies, the PS5 and Xbox Series consoles also made a contribution to the overall revenue figures.
After leaving the EU in 2016, there were some concerns that the UK going it alone could potentially have an impact on the game's industry. Despite the historic referendum taking place and arguably creating a political divide in the nation, the report seems to indicate that the gaming market in the UK seems to be flourishing more than anything. If there is one thing that this report shows, it's that the UK is not always divided as people come together in the spirit of video games.
Source: Scottish Games Network