UK gaming market revenue hits £8.7bn - where sub-sector growth actually points

Apr 13, 2026

Summary

UK gaming market revenue reached £8.7bn in 2025, with digital console sales up 9.2% and mobile up 7.9%.

Entertainment adjacents grew fastest: film/TV/soundtracks up 70%, merchandising up 43%.

UK studio employment fell 4.5% to 27,347 despite rising revenue.

London ranked world's third-largest developer hub after LA and San Francisco.

Total UK market: £8.7bn in 2025.

Software sales rose 7% to £6.03bn; digital console specifically up 9.2% to £2.49bn.

Mobile grew 7.9% to £2bn on better monetisation despite fewer downloads.

Hardware up 3% to £2.17bn, partly lifted by Nintendo Switch 2's June 2025 launch.

Film/TV/soundtracks surged 70% to £159mn, the fastest-growing segment in the UKIE report.

Toys and merchandising rose 43% to £333mn.

A Minecraft Movie hit £56.8mn, becoming the UK's highest-grossing film.

These channels are growing 5-10x faster than core software for publishers with established IP.

UK games workforce fell from 28,516 to 27,347, a 4.5% decline.

TIGA flagged this as the most severe downturn on record.

Net loss of 1,084 FTE: 491 companies cut 3,655 roles while 513 studios added 2,571.

Revenue growth plus shrinking headcount flags acquisition targets with strong IP but stressed economics.

If mobile monetisation keeps improving despite declining downloads, UA spend efficiency becomes a key competitive lever.

Entertainment adjacent growth may redirect publisher M&A toward IP licensing over game studios.

London's top-3 hub status makes UK co-dev and acqui-hire deals attractive for global publishers.

If employment drops another 4%+ in 2026, expect accelerated studio consolidation favoring strategic acquirers.

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