It comes as no surprise that video game sales have dropped worldwide. The UK isn’t the only market to see drastic drops, as Europe also experienced heavy drops in console purchases, especially for Xbox. In the first half of the fiscal year in the UK, video game sales have dropped by a significant 30%.
Many people knew there would be more of a struggle, as there haven’t been many “hit” games in the first half of 2024 compared to 2023. According to figures released by the Entertainment Retailers Association, sales of both physical and digital video games have dropped by 29.4%.
Despite the drastic drop in sales, video game sales were still significantly higher than Music sales, which include Vinyls, CDs, and downloads. These sales do exclude the streaming of music, though. While music sales are relatively low, they have risen 7.9% year-over-year to £163.8 million.
Physical game sales have dropped by 40% year-over-year to £111.7 million, with digital downloads dropping by 23% to £263.9 million. Many factors could be causing the drop in sales, with much of it being attributed to video games being too expensive for many people. Additionally, digital games are often cheaper and can be bought on third-party websites for a significant discount.
“It was a tough first half for the games business with a lack of heavy-hitting releases, but we are optimistic for the second half, the traditional time for blockbuster releases,” says Entertainment Retailers Association CEO Kim Bayley.
With games such as the Silent Hill 2 remake, Super Mario Party Jamboree, Call of Duty: Black Ops 6, and Assassin’s Creed Shadows all due to be released in the second half of the year, video game sales may pick up once again.
Video game sales have been struggling immensely in the UK due to the cost-of-living crisis, where people can barely afford to survive, let alone purchase video games. Pair this with the lack of major games being released, and annual video game sales have dropped significantly and have fallen behind movie revenues for the first time since 2012.
Overall, the video games industry has struggled recently, with layoffs, studios closing down, and games being scrapped right before release. It’s been a volatile time for the entertainment industry as a whole, and we can only hope it improves before it worsens.
