UK video game market slumps

 

 

UK video game market slumps
One of the sectors in the era of technological advancement is video games. Earlier it was only popular to play games for entertainment, but nowadays it is also a profession. Even in many countries around the world, video games have become a money-making medium and business. The gaming sector market has also declined due to various reasons including fear of global recession, price inflation. The value of the UK video game sector fell by 5.6% in 2022. This information has been revealed recently in a report by The Association for UK Interactive Entertainment (UKIE).

According to news published in TechTimes, the sector’s market in the UK last year was 7.05 billion euros or 8 billion dollars, which is 17 percent more than the period before the Covid-19 pandemic. According to a BBC report, sales of gaming hardware, including consoles, fell 19 percent to $2.69 billion last year. On the other hand, the sales of software increased by 4.4 percent to 5.71 billion dollars. UKIE chief executive (CEO) Dr. “We are delighted that the UK consumer video game market is continuing to grow,” said Joe Twist.He said, ‘After the Covid-19 pandemic, people have naturally cut down on spending. But despite this, the need for the Games and its cultural impact in the UK is still strong.

UKIE is primarily a not-for-profit organisation. It represents the UK computer and video game industry. The organization represents more than 600 organizations, game designers, publishers, platforms and service providers.In the post-Covid-19 pandemic, the video game business, like other entertainment sectors, is facing huge losses due to various factors, including fears of a recession. Because consumer spending has largely decreased due to inflation. Gamers’ spending on video games will decrease due to the ongoing Russia-Ukraine war, inflation and high spending on energy, according to new survey data.

While software sales increased in 2022, gaming console sales fell 27 percent. Usually after two or three years, when a new version of the console is released, the price of the old version drops significantly. In the meantime, Sony said that sales of the PS5 dropped last year due to the Covid-19 pandemic. Video content for streaming and games fell 4.8 percent last year. The rate was predicted to rise after the pandemic.According to The Electronic Retailers Association’s (ERA) Yearbook 2023, last year LEGO Star Wars: The Skywalker Saga; PlayStation exclusives God of War Ragnarok and Horizon: Forbidden West; Pokemon Legends: Arceus on Switch and Ring of Eld were the best-selling games in the UK.Hogwarts: Legacy; Although Starfield and The Legend of Zelda: Tears of the Kingdom game market is delayed, analysts and stakeholders expect growth in this sector this year. Because this sector is already higher than before the covid-19 pandemic.