2008 then, was essentially a ‘sweet-spot’ of high sales at relatively high prices, which is why software, hardware and accessory value saw such positive growth.

Hardware sales climbed 14 percent from 2007 to reach around £1.4 billion last year. Bloch expects growth in hardware this year, yet “on the proviso that certain things will happen. The biggest thing that needs to happen is a shift in price point on certain formats, such as Playstation 3.”

“You have to also consider that various machines are at different cycles,” Bloch adds. “Some format sales have increased hugely, such as the Wii, PS3 and 360; some formats have seen sales decrease hugely, such as the PS2 and, to a certain extent, the PSP as well.” 

On the subject of rising sales, Nintendo’s Wii and DS both had a decisive presence in 2008. “When it comes to unit sales of all formats since records began, top of the list was the DS Lite’s 2008 year, second on the list is the Wii’s 2008 year. Both consoles were a huge factor in the growth of the whole market.”

Almost a quarter of all software sales were for the Wii, with more than 20 million games sold for the system in the UK. That’s a growth of 153 percent over 2007, while revenue from Wii software sales climbed 112 percent to £481 million. “The Wii has broadened the market demographic. And what we’re now seeing is thirdparty publishers – especially Ubisoft – recognising that. Imagine Babies, for example, was a huge selling product in 2008.”

Revenue from peripherals boomed 82 percent in 2008, achieving sales of £549 million. As you would expect, Bloch explains that this type of growth is driven by both the Wii’s range of peripherals, as well as games like Rock Band and guitar Hero. “When people buy a Guitar Hero bundle with all the instruments, what we do is put the game into the software chart at its regular price, and the remaining value of the bundle is recorded as accessories. So because both Rock Band and Guitar Hero sold so well, there’s a lot of value being created on accessory products.”