UK Videogame Industry Records First Half 07 Growth News
Chris Leyton
06/07/2007
ELSPA and Chart-Track report highlights growth but voices concerns over the UK's creative industry future...
A recent report compiled by ELSPA and Chart-Track indicates that the UK games industry enjoyed increased sales during the first half of 2007 compared to the same period last year. Sales of videogames on all formats rose to £519 million, representing a 17% increase compared to the first half of 2006. Increased pressure from countries such as Canada, which provides incentives and tax breaks to game companies, has however seen the UK slip in the world rankings of game producers, whilst the rise of emerging Asian economies such as China continues to throw concern over the UK's creative industry.
Home console hardware sales for the period stood at 2.2 million, which saw Nintendo control 53% of the market (1.18 million), followed by Sony's 34% (0.75 million) and Microsoft's 12% stake (0.26 million). Interestingly, the success of Wii appears to have had an effect on Sony and Microsoft, both of which saw a 10% decrease in home console market share. Sony will take some solace from the fact it has taken 45% of the market revenue for the period on home console sales, equating to £182.85 million, compared to Nintendo's £84.63million and Microsoft's £68.85 million.
Sales of handhelds increased by 8%, largely a result of the continued domination of the Nintendo DS. Increasing its grip on the market, sales of Nintendo handhelds now account for 72% of the market (0.67 million), whilst Sony saw its share drop by 14% to just 260,000 PSP units sold through the first half of 2007.
In terms of software sales the Nintendo DS and Xbox 360 emerged strong throughout the first half, totalling 4.04 million and 3.14 million units respectively. Both continue to flag behind sales of PlayStation2 software however, which despite a 23% decline compared to the first half of 2006 still managed to achieve 6.49 million units and generate revenue of £115 million.
Paul Jackson, Director General of ELSPA, said: "We are thrilled to see the industry thriving and not only growing but soaring. With so many excellent titles now available for all ages, appealing to a wide audience the industry is stronger than ever. The speed of the growth of the games industry is testament to the creativity, technology and diversity which is employed by the modern games business.
"The UK plays a huge part in the development of games that sell in the millions around the world. We are a huge part of UK PLC's Creative Economy, but it is important to note that the future of this buoyant economy is uncertain as tax incentives and cost contributions of up to 38 per cent in other territories around the world are prompting a brain drain and an impact on IP ownership and Balance of Payments contribution.
"The UK has spent years building up a significant skills and technology base, but the short and long term outlook as it stands is not good. We once again encourage Government to look at the issues raised by the respected economist Will Hutton in his recent report into UK Creative Industries."
On the popularity of games, he added: "With the new generation consoles and new handhelds there are some amazing titles out there and consumers are continuing to enjoy them. There are new and exciting games available and more and more family orientated and mentally stimulating titles to grasp and hold the interest of all ages."
Total Console Hardware Sales (units)
Q1-Q2 (2006) 1.47 million
Q1-Q2 (2007) 2.22 million
Nintendo (19%)
Q1-Q2 (2006) - 0.5 million (34%)
Q1-Q2 (2007) - 1.18 million (53%)
Sony (-10%)
Q1-Q2 (2006) - 0.65 million (44%)
Q1-Q2 (2007) - 0.75 million (34%)
Microsoft (-10%)
Q1-Q2 (2006) - 0.32 million (22%)
Q1-Q2 (2007) - 0.26 million (12%)
Total Handheld Sales (units)
Q1-Q2 (2006) - 0.86 million
Q1-Q2 (2007) - 0.93 million
Nintendo (14%)
Q1-Q2 (2006) - 0.5 million (58%)
Q1-Q2 (2007) - 0.67 million (72%)
Sony (-14%)
Q1-Q2 (2006) - 0.36 million (42%)
Q1-Q2 (2007) - 0.26 million (28%)
Total Games Software (units)
Q1-Q2 (2006) 21.87 million
Q1-Q2 (2007) 26.01 million
Gameboy Advance (-48%)
Q1-Q2 (2006) 1.00 million
Q1-Q2 (2007) 0.52 million
Microsoft Xbox (-75%)
Q1-Q2 (2006) 1.73 million
Q1-Q2 (2007) 0.43 million
Microsoft XBox 360 (131%)
Q1-Q2 (2006) 1.36 million
Q1-Q2 (2007) 3.14 million
Nintendo DS (196%)
Q1-Q2 (2006) 1.37 million
Q1-Q2 (2007) 4.04 million
Nintendo Gamecube (-80%)
Q1-Q2 (2006) 0.20 million
Q1-Q2 (2007) 0.04 million
Nintendo Wii
Q1-Q2 (2006)
Q1-Q2 (2007) 1.57 million
Playstation 2 (-23%)
Q1-Q2 (2006) 8.44 million
Q1-Q2 (2007) 6.49 million
Playstation 3
Q1-Q2 (2006)
Q1-Q2 (2007) 0.93 million
Sony PSP (7%)
Q1-Q2 (2006) 2.12 million
Q1-Q2 (2007) 2.27 million
PC Games Software (19%)
Q1-Q2 (2006) 5.51 million
Q1-Q2 (2007) 6.55 million
Total Software Revenue (£)
Q1-Q2 (2006) - 445 million
Q1-Q2 (2007) - 519 million
Gameboy Advance (-62%)
Q1-Q2 (2006) - 18 million
Q1-Q2 (2007) - 7 million
Microsoft Xbox (-85%)
Q1-Q2 (2006) - 29 million
Q1-Q2 (2007) - 4 million
Microsoft XBox 360 (73%)
Q1-Q2 (2006) - 58 million
Q1-Q2 (2007) - 101 million
Nintendo DS (164%)
Q1-Q2 (2006) - 34 million
Q1-Q2 (2007) - 91 million
Nintendo Gamecube (-80%)
Q1-Q2 (2006) - 4 million
Q1-Q2 (2007) - 1 million
Nintendo Wii
Q1-Q2 (2006)
Q1-Q2 (2007) - 46 million
Playstation 2 (-32%)
Q1-Q2 (2006) - 168 million
Q1-Q2 (2007) - 115 million
Playstation 3
Q1-Q2 (2006)
Q1-Q2 (2007) - 37 million
Sony PSP (-19%)
Q1-Q2 (2006) - 59 million
Q1-Q2 (2007) - 48 million
PC Games Software (-4%)
Q1-Q2 (2006) - 71 million
Q1-Q2 (2007) - 68 million
Total Console Hardware Revenue (£)
Q1-Q2 (2006) - 217 million
Q1-Q2 (2007) - 405 million
Nintendo
Q1-Q2 (2006) - 45.57 million (21%)
Q1-Q2 (2007) - 84.63 million (39%)
Sony
Q1-Q2 (2006) - 95.48 million (44%)
Q1-Q2 (2007) - 182.25 million (45%)
Microsoft
Q1-Q2 (2006) - 75.95 million (35%)
Q1-Q2 (2007) - 68.85 million (17%)
Total Console Hand-Held Revenue (£)
Q1-Q2 (2006) - 112 million
Q1-Q2 (2007) - 101 million
Nintendo
Q1-Q2 (2006) - 44.8 million (40%)
Q1-Q2 (2007) - 64.64 million (64%)
Sony
Q1-Q2 (2006) - 67.2 million (60%)
Q1-Q2 (2007) - 36.36 million (36%)