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Gaming was the biggest UK entertainment retail sector in 2011

By Matthew Handrahan

Gaming was the biggest UK entertainment retail sector in 2011

Tue 27 Mar 2012 8:16am GMT / 4:16am EDT / 1:16am PDT

Video game software overtakes video for the first time, now 40 per cent of entertainment retail

Video game software was the UK's most valuable entertainment retail category in 2011, overtaking video for the first time.

According to data released by the Entertainment Retailers Association, revenue generated by boxed retail, digital downloads and apps hit £1.93 billion last year, versus£1.8 billion for video and £1.06 billion for music. Digital game revenue hit £504 million, versus £333 million for music and just £97 million for video.

Games represented 40.2 per cent of entertainment retail in 2011 - ahead of 37.6 per cent for video. The report notes that physical video sales have doubled that of games in the first 12 weeks of 2012, though historically the games industry generates the vast majority of its revenue later in the year.

"This is a dramatic time for the entertainment market. It is an historic development for the games sector to have overtaken video last year. Video has long been the biggest entertainment sector," said ERA director general Kim Bayley.

Overall, combined sales of games video and music fell 3.3 per cent year-on-year to £4.8 billion.

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Dave Herod Senior Programmer, Codemasters

534 801 1.5
So if digital revenue for games is half a billion, yet 1.9 billion in total, that must mean physical boxed retail still accounts for 1.4 billion - almost 3 times more than downloads. That doesn't seem to support those ranting on about physical retail being obsolete and how the entire industry is ready to go entirely digital right now.

Posted:4 years ago


Thomas Dolby Project Manager / Lead Programmer, Ai Solve

371 354 1.0
Seems kind of surreal that the only real gaming presence on the high street is now going into administration, and yet it's the biggest sector in the UK.

Posted:4 years ago


Greg Knight Freelance Developer

59 63 1.1
And we're all still broke!

Posted:4 years ago


Tameem Antoniades Creative Director & Co-founder, Ninja Theory Ltd

196 164 0.8

It's like the bathplug's been pulled and the bath is emptying but still pretty full!

Posted:4 years ago


Tony Johns

520 12 0.0
I kinda feel like the photo used for this article was taken back in the PS1 days.

Does anyone think we should try with a new .jpeg image, like a few kids playing with a Wii mote or a XBox360 controller?

Posted:4 years ago


Tony Johns

520 12 0.0
Also if gaming retailers and developers and publishers are not going well financially as they are saying, I would hate to see the Video DVD market.

Posted:4 years ago


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