The UK games industry has achieved unprecedented growth, recording impressive revenues for 2017. In this landmark year, both digital and hardware sectors showed significant growth, highlighting the industry’s buoyant nature.
With revenues soaring to £5 billion, the sector’s success was driven by an expanding audience and growing monetisation. Mobile revenues reached a billion-pound milestone, despite user figures remaining stable, reflecting increased spending by existing users.
Expanding Audience Drives Revenue Growth
The UK games industry saw a remarkable 12.4% increase in total revenue compared to the previous year. This growth, attributed to a broader audience reach, underscores the sector’s capability to attract diverse demographics.
Carter Rogers, a senior analyst at SuperData, noted that even with flat user growth on mobile platforms, increased spending by current users drove revenue. This suggests that existing consumers are now more willing to invest in gaming experiences.
Digital and Online Sales Surge
Software revenue climbed to over £3.5 billion, marking an 8.3% rise. A substantial part of this increase came from digital and online sales, which rose by 13.4%, reaching a new high of £1.6 billion.
Physical game sales also experienced growth, reflecting a robust market for both digital and tangible gaming products. The dual growth paths highlight consumer preferences for varied forms of gaming.
Console and VR Hardware Sales Increase
Consoles experienced a significant 30% boost in sales, amounting to £659 million. This surge can be attributed to innovative consoles such as the Nintendo Switch.
Virtual reality hardware also proved popular, with sales increasing by 23.5% to £101 million. Dr. Jo Twist of Ukie highlighted the positive trajectory of VR technology, which is gaining traction among tech-savvy consumers.
The convergence of traditional console gaming with cutting-edge VR experiences provides consumers with more immersive and engaging options.
Monetisation Trends in Mobile Gaming
Despite flat growth in user numbers, mobile gaming revenues rose by 7.8%. This was mainly driven by enhanced monetisation strategies that capitalised on existing user bases.
Carter Rogers remarked on the effectiveness of these strategies in converting current users into higher spenders, exemplifying the industry’s innovative approach to revenue generation.
Impact of New Hardware Releases
New hardware releases played a crucial role in boosting retail sales. Notably, the success of the Nintendo Switch added momentum to the industry’s overall growth in 2017.
The introduction of new and appealing hardware options has energised the market, encouraging both new purchases and upgrades among gaming enthusiasts.
Strengthening retail sales through such releases demonstrates the industry’s resilience and adaptability in meeting consumer demands.
Analysis of Key Growth Factors
The success factors for the UK games industry are multifaceted, encompassing technological innovation, effective marketing, and broadening of audience demographics.
The industry’s ability to adapt to current trends, such as digitalisation and immersive technologies, has set a foundation for sustained growth.
Record Year: A Benchmark for Future Growth
The achievements of 2017 set a new benchmark, showcasing the UK games industry’s potential for future growth.
As the industry continues to innovate and adapt, it is well-positioned to maintain its upward trajectory and explore new opportunities in the gaming sector.
2017 stands as a landmark year for the UK games industry, marked by notable digital and hardware advancements. Looking forward, the industry is poised for continued innovation and growth.
The current trends indicate a promising future, driven by ongoing technological advancements and consumer engagement strategies.