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UK Leisure Software Research Shows Sales Up and Prices Down
3/3/01



New research from the European Leisure Software Publishers Association (ELSPA) and ChartTrack reveals that the UK leisure software market is the third largest country market in the world, after US and Japan. In consequence, British consumers spend more on leisure software than on renting videos or cinema visits.

The ELSPA/ ChartTrack figures indicate that UK sales of video games and other leisure software products reached an all-time high over the year 2000. They sold over 39.5 million units during this period, representing a 16% increase on the previous year and 32% on 1998 sales. In terms of overall value, the total market was worth over £934m last year, representing a 2% increase year on year. This value rise is thought to dramatically highlight the falling retail price of the products.

By sector, the research shows that the console market performed particularly well. It enjoyed a unit sales increase of 23% in 2000 over 1999, with total revenues up by 6%. The home computer software market fared less well however, showing only a 6% increase in units sold whilst falling 6% in value against the 1999 figures. According to ChartTrack, historic data shows the true extent of the decrease in unit prices. The average price of a PC CD game was £24.03 in 1998. By 2000, in comparison, the same product had dropped to an average price of £20.08. An even bigger price drop has taken place in the console market. In 1998, PlayStation titles cost an average of £32.58. By 2000, the average price was £22.30.

Price aside, the research shows one notable success area for the year 2000. This was in the market for the software developed for Gameboy. An estimated 2.5 million units of this software were sold specifically for Gameboy Colour machines during the year, up 160% on 1999 figures. These sales were thought to have reached nearly £50m, rising some 123% on 1999 levels. The findings indicate that the rise is largely attributed to the success of Pokémon games. According to Michael Rawlinson, general manager of ELSPA, "The ChartTrack figures confirm the year-on-year growth of the leisure software market in this country, confounding some City analysts who forecast that year 2000 would see a downturn in business. The peaks and troughs that used to be associated with the introduction of new games hardware are well and truly behind us. This year should be another great one as we see sales of PS2 hardware and software really take off and the first entry of Microsoft into the lucrative console market."