The Video Games Industry: A Breakdown

Video games have been around for over 60 years, forming an increasingly central part of popular culture over time. This cultural and societal value was brought into stark relief following the COVID-19 pandemic, when mass adoption skyrocketed.

With lockdown conditions forcing people inside, the UK’s home entertainment sector experienced significant growth. Indeed, in 2020, the British public spent £1.6 billion more on games than in the previous year.

The industry is continuing to grow economically, creatively, and technologically. Games developers are finding new ways of improving player experience – from computer graphics to sound design – and they are using new artificial intelligence tools to push the boundaries of what we thought was possible.

The industry at a glance

• Ukie (UK Interactive Entertainment) states that the value of the UK video games market was £7.82 billion in 2023, which is a 4.4% increase on 2022.
• A report by FTI Consulting and Ukie reveals that the video game technology used in other sectors, such as healthcare and film, is worth £1.3 billion.
• According to the ERA Yearbook 2024, video games contribute to 40% of sales in the UK entertainment industry.
• ERA (Entertainment Researchers Association) also claim that, in 2023, consumer spend hit a record £4.7 billion across digital and physical elements.

The UK’s favourite games

Games like FIFA and Grand Theft Auto have been making waves since the 90s and are still topping the sales charts. Other bestsellers in 2023 include Hogwarts Legacy, Call of Duty: Modern Warfare III, and Marvel’s Spiderman 2.

At the 20th BAFTA Game Awards, Baldur’s Gate 3 emerged triumphant, securing 5 prizes, including Best Game. The award for Best British Game went to Viewfinder, while Dave the Diver was awarded Best Game Design.

Crossing over into film

The film and games industries overlap in countless ways: they often use the same technologies, including animation and visual effects; they can incorporate music; and they use similar storytelling techniques.

This is, perhaps, why video games are so amenable to adaptation into film. Ukie figures show that, between January and June 2023, video game adaptations accounted for over 1% of all viewing on Netflix. In total, this amounted to over a billion hours.

The most famous of these is The Last of Us, which began as an action-adventure game set in a post-apocalyptic world. We were fortunate to welcome Eben Bolter, the show’s cinematographer, for an exclusive masterclass in 2023.

Sports and eSports

The first sports video games were ‘ball and paddle’ games, replicating sports like tennis. The 80s saw the development of driving simulation games, as well as various team sports. These are still incredibly popular today: according to ERA figures, the biggest-selling console game of 2023 was EA Sports FC 24.

While some may argue that video games encourage people to remain indoors, they can – in fact – have the opposite effect. One example is the 2016 game, Pokémon Go, which encourages players to explore the world around them in order to catch Pokémon characters. The game not only broke sales records; it changed many people’s perceptions about what video games are. It was also one of the first mobile games to introduce augmented reality (AR) to a widespread audience.

Playing video games can also open up career paths. Sports Interactive’s Football Manager 2024, which won Best PC Game at the Ukie Video Game Awards in 2023, is one such game. One player was so good at it that he got scouted by Bromley FC and is now working as a full-time tactician at the club.

With regards to eSports, giants such as Riot Games, Twitch, and FACEIT all have offices in the UK, and a 2023 Ukie report states that we have the most student eSports players of anywhere in Europe. This is great for the games industry, as 46% of eSports followers use online streamers to discover new games.

How can video games help mental health?

There is a degree of media scaremongering when it comes to video games. However, new evidence has emerged that video games can improve mental health, as they offer avenues for escapism and foster social connection.

A 2023 BBC article explained how The Legend of Zelda: Tears of the Kingdom has helped people through tough times. The game is very open-ended, meaning that you can choose how you play. So, outside the main quest, you could wander the beautiful landscapes for a more relaxing and therapeutic experience.

The charity, Safe in our World, examines the impact of video games on mental health and provides support for gamers and developers who are struggling. Their website includes plenty of mental health resources, and a podcast on Spotify.

Read more: The Positive Power of Play: How Video Games Enhance Mental Health

Government investment

The UK government is attempting to understand more about video games – including how the industry can benefit the wider economy, and how games can improve players’ wellbeing – using a new framework that has been devised by the Department for Culture, Media and Sport alongside industry experts.

In June 2023, the government announced £77 million of new funding for the creative industries. This includes £5 million specifically for the UK Games Fund, which awards grants to young video game developers.

It has now been decided that £3 million of this will go to 22 ‘rising star’ video games companies. With grants of up to £150,000 each, these studios will have the capacity to hire more staff and secure publishing deals.

Conclusion

The UK video games industry is a dynamic and rapidly evolving sector, contributing significantly to both the national economy and global gaming culture. With advancements in technology and increased accessibility, the future of the industry looks promising, offering countless opportunities for creative professionals and businesses to thrive. As the landscape continues to grow, the UK remains a key player in shaping the future of video games on a global scale.

In short, there’s never been a better time to start your path onto a career in video games. Beginning that career with a degree from MetStudios is the ideal first step towards gaining the valuable skills and expertise you’ll need in the industry – and we’ll even help you with job opportunities both before and after you graduate.