Gaming market dips after pandemic surge but way up on 2019

UK consumer spending on games content and services declined in 2022, according to data from Ampere Analysis, the market’s first decline since 2012.

Why it matters

For an industry that did very well during the pandemic, the near-return to normality coupled with high inflation has dampened this kind of ultra-discretionary spending.

But the real takeaway from Ampere’s figures is that gaming spend remains 23% ahead of 2019 levels, suggesting that games and gaming turned a corner over the course of the pandemic.

For more on WARC’s gaming intelligence, subscribers can read Oli Feldwick’s new deep dive into the motivations of gamers, the landscape, new trends, and what marketers can do about it.

The figures

• UK spending on games content and services declined 1.6% in 2022 to a total of £5.38bn compared to 2021’s £5.47bn.
• Mobile gaming declined 3% year on year (£1.66bn down from £1.72bn), with new privacy rules on Apple devices affecting some developers’ ability to advertise to new users.
• Console gaming only declined 1% over 2022 (£2.89bn down from £2.92bn) with subscription strategies arresting what would have been a 3.2% annual decline. Supply issues with next gen consoles like the PS5 and the Xbox Series X were a major factor.
• PC gaming declined 1.2% (£815m down from £825m), with price rises offsetting volume declines. Roblox’s continued strength was key to this segment.

The changing shape of monetisation

•  Subscriptions were the big winner when it comes to monetisation, with a 9.8% growth (£730m in 2022 up from £670m in 2021). Meanwhile, in-game and downloadable content declined 4.1%.
• This taps into a broader (and now largely diminishing) conversation about virtual items and their place in the much-discussed metaverse, and how willing people may be to pay for them.

Sourced from Ampere Analysis, WARC. 

[Image: Ampere Analysis]