UK Future of Gaming Report 2025
"Innovation in gaming will accelerate with the use of AI, but most gamers are more interested in compelling stories and creativity than heightened realism."
Adrian Reynolds, Associate Director
Future of Gaming in the UK
- Gamers are split on the use of AI in the industry, with 57% saying they feel positive. This rises among younger gamers, but the key will be how the technology is used, and the need for transparency from developers and gaming platforms.
- Industry layoffs have already brought criticism, and many gamers will want to ensure the human touch remains in writing and creativity. Given the prominence of competitive play and esports, there will also be concerns about the use of AI assistants to boost abilities.
- The rise of mobile, cloud and handheld gaming has opened up the market to a wider audience than ever before. This brings strong opportunities for brands in other sectors to leverage their exclusive IP in the gaming sector. Streamers such as Netflix will be well-placed to expand their games offering, while we have already seen toy company Hasbro shift from licencing towards focusing on its own gaming studios.
- Innovation that expands the scope of games could become a threat to profitability. Many gamers already feel they lack the time to play all the games they desire. People are already playing fewer titles, with big expansive worlds requiring more and more time.
- Improving visuals and the use of AI for generative and ever-changing games may be impressive, but it will limit the variety of games played. There are also diminishing returns when it comes to graphics upgrades, with incremental improvement less likely to drive sales of expensive new hardware.
This Report Looks at the Following Areas:
- The latest developments in the games industry, anticipated launches for 2026, and the impact on the wider market
- Motivations for playing video games, with creativity and storytelling leading the way, and many believing some games have prioritised realism over fun
- Out-of-home gaming and the factors that encourage people to visit venues, including the social aspect and access to the latest releases and game previews
- Games purchase preferences in 2030, with no sign of gamers being willing to give up the physical form in the near future
- Interest in gaming innovations and the potential impact of AI on game development, editing, gameplay and competition
- Consumer attitudes towards the future of gaming, with the majority wanting greater representation of female characters
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EXECUTIVE SUMMARY
- What you need to know
- Outlook for the video games market
- Opportunities
- Empower gamers with AI tools that enhance their creativity and support discovery
- Gamers are slightly split on AI, despite potential for faster development
- Competition will grow, with more brands seeking to leverage their IP expansion
- Many gamers are looking to socialise at out-of-home gaming venues
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THE MARKET
- Market background
- Mobile titles have helped to drive growth, with two-thirds of people having played video games recently
- Graph 1: gaming habits in the last three months, 2025
- Graph 2: frequency of gaming in the last three months, 2025
- Cloud gaming continues to grow, but the demand for physical discs remains
- Shorter game options can keep busy gamers engaged in a franchise
- Streaming companies are well-placed to leverage their exclusive IP in the games market
- Netflix remains committed to the games market despite a shift in strategy
- Despite brands pushing mixed-reality productivity tools, gaming remains the key market for VR
- Graph 3: interest in VR use cases, 2024
- Market drivers
- Many households continue to feel the impact of the cost-of-living crisis, and could cut back spending on games
- Graph 4: CPI inflation rate, 2021-25
- The UK games market will be boosted by additional funding and support from the UK government
- Mobile network speeds and data use will continue to grow, bringing new opportunities for mobile gaming
- Graph 5: mobile data traffic by technology, 2021-25
- Gamers will be a key market for ultrafast broadband and unlimited data plans
- Graph 6: average fixed broadband data use per month in GB, 2013-24
- AI will play a growing role, but gamers will still want human creativity to lead the industry
- Virtual reality gaming has a bright future, but it isn’t likely to take place in the metaverse
- Graph 7: Google searches for the word “metaverse”, 2021-25
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THE CONSUMER
- Important factors for gamers
- Gamers want stories they can connect with, emphasising the continued importance of talented writers
- Graph 8: important factors in video games, 2025
- Add elements of creativity to drive engagement and gaming community
- Desire for creativity highlights the potential for more Roblox- and Minecraft-style games
- Graphics will continue to improve, but realism is not the priority for most gamers
- Diversity of characters is vital to keep gamers engaged
- Nostalgia and a desire for simpler games will ensure the future of gaming echoes the past
- Interest in AI gaming innovations
- There is cautious interest in a range of AI-enabled gaming innovations
- Graph 9: interest in AI gaming innovations. 2025
- Developers must strike a balance between AI-led personalisation and shared experience
- Offer AI tools that can unleash gamer creativity
- Graph 10: gamer interest in creativity-focused AI tools, by generation, 2025
- Out-of-home gaming
- The mass appeal of gaming will bring huge opportunities for venues and events
- Graph 11: important factors in driving visits to out of home gaming venues, 2025
- Bring gamers together to connect over their favourite franchises
- Showcase the latest games and hardware to draw in young gamers
- Games purchasing in 2030
- Gamers will still expect the option of physical games in 2030
- Subscriptions will play a major role, but many would prefer to subscribe to a single franchise than a wider platform
- Graph 12: purchase expectations in five years’ time, 2025
- The gamer of the future will embrace both physical and digital games
- Most gamers would pay a higher game price to forgo in-game purchasing
- Graph 13: gamers who would rather pay more up-front than pay for in-game purchases, by generation, 2025
- Attitudes towards the future of gaming
- Young gamers are a key market for superfast, thematic broadband packages
- Broadband innovation will increase opportunity for games streaming and partnerships
- Expectations for virtual-reality gaming remain high, despite limited growth
- XR headsets will continue to evolve, but gaming will remain the main use case
- Collectibles such as Labubus bring an instant audience for game adaptations
- Games studios must stay ahead of new trends in toys and collectibles
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INNOVATION AND MARKETING
- Competitive strategies and launch activity
- Netflix agrees deal to acquire Warner Brothers, including the gaming division
- Netflix increases its emphasis on living room party games, but will continue to expand mobile
- Big franchises will continue to dominate, with GTA VI the most anticipated game of 2026
- Steam owner Valve has announced three major new product launches for early 2026
- More innovation will come to the XR space, with lighter, more-comfortable headsets vital for growth
- Microsoft rolls out Copilot for gaming
- Faster speeds and data demands will drive broadband and gaming partnerships
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APPENDIX
- Market definition
- Consumer research methodology
- Consumer research questions
- UK generation groups
- Abbreviations and terms
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