UKIE, the UK’s trade body for the games industry, has released its annual comprehensive report, offering insightful data and analysis on the nation’s gaming sector, based on 2025 figures. The report highlights that the British games industry is now valued at £8.7 billion, marking an increase from its 2024 valuation, even as employment faces significant challenges.
The sector’s growth is broad-based. Software sales rose by 7% to £6.03 billion, and digital console sales saw a substantial 9.2% jump, reaching £2.49 billion. Hardware also experienced a strong year, potentially bolstered by the anticipation of the Nintendo Switch 2, with a 3% increase leading to £2.17 billion in sales. The mobile gaming segment continues its upward trend, growing by 7.9% to £2 billion. Sales of game-related merchandise, including ‘films, TV shows, and soundtracks,’ surged by an impressive 70% to £159 million, while other merchandise sales increased by 43% to £333 million. Film adaptations contributed £77.9 million to the industry’s revenue.
The data further indicates that London ranks as the third-largest global hub for game developers, trailing only Los Angeles and San Francisco. Despite these positive financial indicators, the UK games sector has encountered its ‘most severe employment slowdown on record.’ This has resulted in a 4.5% year-on-year decrease in roles, translating to approximately 1,200 jobs lost during the reporting period.