Console Sales Slide: UK Hardware Drops 24% in 2024

A Market in Pause, Not in Peril

In 2024, UK console hardware sales saw a steep decline, dropping by 24% to £723 million, according to new industry figures. That number alone might look like a red flag - but a closer look reveals a more complicated picture.

While the wider UK gaming market slipped just 1.8% overall - ending the year at £7.63 billion - it’s a far gentler dip when stacked against the steep hardware slide. Console hardware remains a pillar of this space, so a drop of that scale isn’t trivial. Still, the trend feels less like a breakdown and more like a natural shift, driven by console lifecycles, broader economic pressures, and evolving player habits.

Let’s unpack how we got here - and why 2025 might already be shaping up as a comeback year.

The Anatomy of a Decline

To really grasp why hardware sales dipped so sharply, you’ve got to look at the bigger picture - especially where current consoles are in their life cycle. The PlayStation 5 and Xbox Series X/S, both released back in late 2020, are now hitting year five. That’s typically when sales start tapering off. Most early adopters have already jumped in, and the supply issues that once stirred up demand have long since settled.

At the same time, the Nintendo Switch - though still widely loved - is starting to show its age. It launched way back in 2017, putting it in its eighth year now, which is pretty impressive for a console. But at this stage, most people who wanted one already have it, and new buyers are understandably cautious about spending on hardware that’s probably nearing the end of its run.

And that’s exactly where anticipation cuts both ways. Buzz around a possible PS5 Pro and the long-rumored Switch 2 - both expected to drop in 2025 - has buyers holding back. After all, why drop a few hundred now when upgraded versions with better specs and fresh features are likely just months away?

This stretch of “hardware limbo” has always led to slower sales between console generations - but in 2024, the impact’s been sharper, thanks to the UK’s particularly intense cost of living crunch.

Economic Realities Tighten the Grip

It’s no surprise that many UK households are feeling the financial squeeze. Climbing energy costs, grocery bills, and interest rates have all chipped away at what’s left for non-essential spending. And while gaming still offers a welcome escape, big-ticket items like consoles often get pushed aside in favor of cheaper, more flexible ways to play.

What stands out, though, is that even as console hardware sales dipped, software held strong. Gamers didn’t step away - they just shifted gears. With digital storefronts and subscription models offering massive game libraries for a flat monthly fee, it’s no wonder they’re becoming the go-to in tighter times.

So while consoles didn’t exactly fly off the shelves, player engagement stayed solid - and that’s an important difference, showing this isn’t about people losing interest in gaming, but more about a temporary shift in how and when they’re spending.

Digital Dominance Redefines Value

One of the clearest shifts we’re seeing is in how UK gamers are actually buying their games. The latest UKIE report shows physical sales have plunged by 34%, now making up just 4% of the software market. And that seismic move to digital isn’t just about ease - it’s also changing how people see the value of their consoles.

Today’s gamers don’t really need a disc drive or a boxed copy to dive into the latest titles. They’re leaning more on digital platforms like the PlayStation Store, Xbox Marketplace, and Nintendo eShop to get their fix. And with their current setups still handling digital games just fine, there’s way less pressure to rush into new hardware.

And let’s not overlook subscription services, which saw a 12% bump in revenue. With options like Xbox Game Pass, PlayStation Plus, and Nintendo Switch Online, players get access to massive libraries - often for less than the price of a single boxed game per year. In that light, the console isn’t really the gatekeeper anymore - it’s more like a portal to a growing world of service-based play.

Where the Market Still Shines

Even though hardware sales stumbled, other parts of the gaming market showed real signs of life. Accessory sales, for example, jumped 14% to hit £463 million. That tells us gamers aren’t stepping away from their consoles - they’re upgrading and personalizing them. Whether it’s grabbing a better headset, picking up a spare controller, or adding ergonomic grips, these kinds of buys show people are still deeply engaged with their current setups.

Console digital software ticked up by 3.5%, hitting £2.446 billion - another sign that the software side of gaming is holding strong. Players are still showing up and spending, just not dropping cash on brand-new consoles right now.

Elsewhere in the gaming world, other sectors picked up momentum. PC hardware sales climbed 6% to £715 million, thanks to growing demand for high-end rigs and top-tier monitors. Mobile gaming - often brushed off as “just casual” - pulled in an impressive 8.1% bump, reaching £1.7 billion. It all points to the same thing: while console hardware hit a bump, the broader gaming scene is anything but slowing down.

Looking Ahead to 2025 and Beyond

The question now becomes: what’s next?

All signs suggest 2025 could mark a big turnaround, with new hardware taking center stage. The long-rumored PS5 Pro is expected to deliver incremental upgrades - aster load times, sharper visuals, and smoother frame rates. It might not redefine gaming, but for dedicated players or those who’ve waited to jump in, it could be the right time.

Even more buzzworthy is the anticipated launch of the Nintendo Switch 2, rumored to arrive in June 2025. Leaks hint at a bigger screen, magnetic Joy-Cons, and backward compatibility - features that could help it match or even outdo the original’s success. After eight years, demand’s been building, and the excitement could translate into serious sales.

And while 2024 didn’t bring many blockbuster releases, next year’s lineup looks much more promising. Bigger titles mean more reasons to upgrade - and for a lot of players, that’s the final nudge they’ve been waiting for.

A Reset, Not a Recession

In short, the 24% dip in UK console hardware sales in 2024 doesn’t signal a market in trouble - it reflects one in the middle of a shift. With aging consoles, economic pressures, and the rise of digital consumption, this slowdown was more or less expected.

But beneath the headline numbers, the UK gaming scene is still very much alive and kicking. Software and accessory sales are climbing, and players are still spending - just in new ways that fit today’s habits.

If anything, 2024 feels like the calm before a big reset. With fresh hardware, stronger game line-ups, and a digital-first approach leading the charge, 2025 could spark a whole new wave of energy - and finally give gamers the upgrade they’ve been waiting for.