Summary
The UK video game industry grew to be worth £8.76 billion in 2025, showing an increase in software sales, hardware, and related culture products like merchandise and films. Despite this growth, the industry faces challenges such as competition for investment from artificial intelligence and a recent decline in new game startups and jobs, prompting the UK government to introduce a £28.5 million fund to support the sector.
Key Facts
- The UK video game industry was valued at £8.76 billion in 2025, a 7.4% growth from the previous year.
- Software sales reached £6.03 billion, hardware £2.17 billion, video game-related films and TV £566 million, and toys and merchandise £333 million.
- The global video game industry has faced job losses and studio closures recently.
- Investment in video games has decreased as many investors focus on artificial intelligence projects.
- UK game developers are struggling to secure funding due to the uncertain market and strong competition from platforms like TikTok and AI apps.
- The industry group TIGA reported a record decline in employment and a drop in new game startups in the UK.
- The UK government announced a £28.5 million fund to provide grants for new and expanding video game companies.
- This funding is part of a wider Creative Industries Sector Plan supporting TV, film, and music artists in addition to video games.
