UK game spending slumps in first half of 2024 while music grows, as release schedule lacks Taylor Swift moment

UK video game spending experienced a significant drop of 29.4 percent in the first half of 2024, contrasting sharply with the growth seen in music and video sales during the same period. This decline highlights the challenges faced by the gaming industry amidst a less-than-stellar release schedule.

Decline in Game Sales

Physical game sales took a substantial hit, falling by 40 percent to £111.7 million compared to the first half of 2023. Digital downloads also saw a decrease, down 23 percent to £236.9 million. These figures were reported by the Digital Entertainment and Retail Association (ERA) and are reflective of a “soft new release schedule,” contributing to the overall slump.

Impact of Release Schedule

According to Kim Bayley, the head of ERA, the first half of the year was challenging for the gaming sector due to a lack of major releases. While 2023 featured high-profile launches such as The Legend of Zelda: Tears of the Kingdom, 2024 has yet to deliver similarly impactful titles. The most significant release so far, Final Fantasy 7: Rebirth for PlayStation 5, has not achieved the sales success of its predecessor.

Anticipation for Upcoming Releases

Despite the current downturn, Bayley expressed optimism for the latter half of 2024, which traditionally sees blockbuster game releases. Notable upcoming titles include Star Wars Outlaws set to launch in August, followed by EA Sports FC 25 and The Legend of Zelda: Echoes of Wisdom in September. October will see high-profile releases such as Call of Duty: Black Ops 6 and Assassin’s Creed Shadows, along with Dragon Age: The Veilguard.

Comparative Growth in Music and Video

While video games struggled, spending on music and video both saw growth during the same six-month period. Music sales rose by 7.9 percent, bolstered by events like Record Store Day and the release of new albums, including Taylor Swift’s The Tortured Poets Department, which featured the lead single Fortnight. Video sales also increased, with growth in digital and video download sales compensating for the decline in physical media sales.

Overall Market Performance

Despite the significant 29.4 percent decline in video game sales, the gaming sector remains the largest among music and video. Total spending on video games from January to June 2024 was £348.6 million, surpassing video sales at £213.7 million and music sales at £163.8 million. This indicates that, while the gaming industry is facing immediate challenges, it continues to dominate in overall market size.