I just thought I'd write abit about the UK's games industry.  It's often regarded as one of the smaller markets in gaming, yet it often challenges Japan (the second largest market) in sales.

Per person, the UK spends more money on gaming then anywhere else in the world. In fact, per person the UK
spends twice as much as Japan (that means that they're about the same in overall revenue, as Japan's
population is roughly twice the size of the UK's). Companies should also expect to sell many more copies
of they're games on non-Nintendo hardware.

The UK also has a much more even-spread of console sales than most other countries, and the current consoles market shares are somewhat more balanced than the other big markets (and the rest of Europe).

The UK is also the largest market in Europe, with sales sometimes reaching up to a third of the overall European
pie.

Videogames have also earnt themselves a special place in the highstreet. With many companies profitable in the
videogame market. There are two main chains fighting for highstreet territory in the UK and they are GAME, and
Gamestation (both of which are owned by EB). Once movie-specialist stores such as Blockbusters now also dedicate large sections of their selling-space to video games. Big supermarket chains such as Tesco and Sainsbury's now have larger videogame sections then they do movie or music sections.

Unlike other large markets in video games, the UK also has a very healthy PC game market. There also many
success stories in terms of online retailing such as Gameplay and Play, and the on-demand service Metaboli has had many successess.

And it's not just sales, the UK has also given birth to some of the most famous, and well respected franchises and companies in the gaming industry. Here's a list of just some of the companies functioning in the UK:

 - Rockstar
 - Realtime Worlds
 - Lionhead
 - BigBig Games
 - Frontier
 - Evolution Studios
 - Rare
 - Free Radical
 - Codemasters
 - Ninja Theory
 - Bullfrog Games

Some UK franchises:

 - Grand Theft Auto
 - Smugglers' Run
 - Crackdown
 - Black and White
 - Fable
 - Pursuit Force
 - Rollercoaster Tycoon
 - Donkey Kong 64
 - Diddy Kong Racers
 - GoldenEye 64
 - Banjo Kazooie
 - Timesplitters'
 - Haze
 - Theme Hospital
 - Theme Park World
 - The Getaway
 - Colin McRae
 - Kung Fu Chaos
 - Heavenly Sword

The UK has also given birth to some of the most famous game designers, possibly most famously: Peter Molyneux
and Chris Sawyer.

So, all-in-all, I believe that the UK has perhaps one of the largest, and most developed gaming industry in the world, even though it is often considered the underdog.

Huzzah!

*Waves Union Jack*

You know why we spend the most, don't you?

Eurodollarpounds! They make us pay US$80 per game, and US$600 for a PS3.

Whats Bullfrog doing these days? They still alive?

Also, media molecule is a UK company

Kuju and Next Level are both british developer that produce Nintendo games like Battalion wars series and Mario Striker series ( the latter a million seller worldwide ).

Bullfrog was shut down by EA.

Also the OP forgot the glorius Psygnosis, now SCE Liverpool that make WipeOut.

Sinclair the maker of Spectrum series of home-computing wa british. Spectrum was for Europe what Atari was for America and Famicom was for Japan: the birth of gaming in that territory.

EDIT: OP forgot Eidos too. They make the famous Tomb Raider serie.

EDIT2: Also Argonaut Software wa british. They made SuperFX chip for Snes and StarFox, Vortex, StarFox2, Stunt Racer FX. Also they developed the  incredible , for the machine spec, X for original Gameboy. It was a 3D wireframe game. 

i wsa born in the uk. does that make me special?

The only reason we spend more is because everything costs so dam much. I wonder how many UK companies are still uk and now under the ownership of Ubisoft or EA.

 Yes. Yes it does.