UK games industry reaches £8.7 billion valuation despite facing "most severe downturn on record" for employment

UKIE has released its analysis of the industry based on 2025's data.
Text: Ben Lyons
Published 2026-04-15

Every year, UK games industry trade body, UKIE, shares a big analytical report that reveals firm data and information as to how the games business is faring across the country. This has now occurred with information gathered from 2025's data.

As reported on by GamesIndustry.biz, the report claims that the UK games sector is now valued at £8.7 billion, which is an increase on 2024's valuation despite employment woes.

The growth in the sector comes across all fronts, as software sales are up 7% to £6.03 billion, while digital console sales have leaped 9.2% as well to £2.49 billion. Hardware had a strong year as well, likely due to the Nintendo Switch 2's arrival, with a 3% increase that led to £2.17 billion. Mobile continues to thrive too, with a 7.9% growth up to £2 billion, with sales of "game-related film, TV, and soundtracks" jumping an insane amount, up 70% to £159 million, with merchandising even increasing 43% to £333 million. Lastly, film adaptations brought in £77.9 million.

The data even added that London is the third-biggest global hub for game developers, placed only behind Los Angeles and San Francisco, in that order. While all of this is positive news, the UK games sector has faced its "most severe downturn on record" in regards to employment, accounting for a decrease in job roles by 4.5% year-over-year, with this equating to around 1,200 cut roles during the period of gathered data.

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