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Forums - Sales Discussion - UK video game sales drop for the first time since 2012

https://www.gamesindustry.biz/articles/2020-01-03-uk-video-game-sales-drop-for-the-first-time-since-2012

" Physical sales plunge as digital growth slows " 

" The physical sales of video games in the UK dropped by 19.8% last year.

17.6 million boxed games were sold by retailers, according to GfK. In total, these games generated £602.5 million in revenue, which is a drop of 21.7% year-on-year.

Digital sales fared better, but growth was just 1.1% to £3.17 billion (IHS estimates). The data has been compiled together by the Entertainment Retailers Association (ERA)

Combined together, UK video game sales generated £3.77 billion in 2019, which is a drop of 3.4% over 2018. It is the first time that the UK games software market has seen a drop in revenue since 2012.

It's not completely surprising considering 2019 was the final full year of the console cycle, where sales tend to slowdown (just as it did in 2012 in the year before the PS4 and Xbox One arrived). 2019 was also notable for a lack of many major game releases -- out of the ten best-selling boxed games in 2019, only six were actually released last year."

ERA CEO Kim Bayley said: "The key message from the games business in 2019 is we need those two new consoles from PlayStation and Xbox -- and soon."



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RIP.



It's almost like the market is cyclical or something...

Back around 2011-2012, there was some hand-wringing over declining game sales, with some even predicting doom and gloom for the console market. But that decline was because we were at the end of last generation. In 2012, the Wii's sales had collapsed entirely, the 360 and PS3 were finally past their peak, and the handheld market was way down from its late 00s heights, with the 3DS and Vita not making up for declining DS & PSP sales. But then the PS4 and XBO were released, and the home console market rebounded, and the market was back on the upswing. But now we're at the end of the current generation. The PS4 and XBO are on the way out, with sales in decline. The 3DS is nearing death's door and hasn't had a hit game since 2017. Only the Switch, which is still young but quickly approaching middle age, is up from 2018, and it hasn't been enough to offset losses from other platforms.



Shadow1980 said:
It's almost like the market is cyclical or something...

Back around 2011-2012, there was some hand-wringing over declining game sales, with some even predicting doom and gloom for the console market. But that decline was because we were at the end of last generation. In 2012, the Wii's sales had collapsed entirely, the 360 and PS3 were finally past their peak, and the handheld market was way down from its late 00s heights, with the 3DS and Vita not making up for declining DS & PSP sales. But then the PS4 and XBO were released, and the home console market rebounded, and the market was back on the upswing. But now we're at the end of the current generation. The PS4 and XBO are on the way out, with sales in decline. The 3DS is nearing death's door and hasn't had a hit game since 2017. Only the Switch, which is still young but quickly approaching middle age, is up from 2018, and it hasn't been enough to offset losses from other platforms.

Sums it up nicely. Thank you. 



So the sales in the year prior to the beginning of the 9th gen are the worst since the year prior to the beginning of the 8th gen? Seems logical, I mean why would you expect anything else?



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Ka-pi96 said:
So the sales in the year prior to the beginning of the 9th gen are the worst since the year prior to the beginning of the 8th gen? Seems logical, I mean why would you expect anything else?

Agreed. This happens every generation. Having the Switch being offset by a few years has helped the decline. But it isn't enough compared to how much PS4 and Xbox One sales are down. Video game sales in 2020 will be down as well. PS5 and Xbox Series X likely won't launch until sometime in November and the impact from them will be limited. PS4 and Xbox One hardware sales will most likely be down 30-40% this year. Unless Sony and Microsoft cut prices of them. PS4 at $199 or $249 and Xbox One SAD to $149, Xbox One S to $199.



VGChartz Sales Analyst and Writer - William D'Angelo - I stream on Twitch and have my own YoutubeFollow me on Twitter @TrunksWD.

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