Sir Keir Starmer must protect the UK's £8bn gaming industry from foreign firms that are putting British jobs and consumer spending at risk, argues Alex Evans. The UK games industry was worth £8.76bn in 2025, according to UK gaming industry body UKIE, growing 7.4% year-on-year. This makes gaming nearly eight times more valuable than the UK's fishing industry (£1.16bn) and larger than TV and film (£2.8bn), dairy (£5.7bn), and music (£8bn), yet it attracts far less attention.
UK's Global Gaming Dominance Threatened
The UK is home to major game developers including Rockstar North (Grand Theft Auto) in Scotland, Playground Games (Forza Horizon), and Codemasters (F1 series). These companies secure hundreds or thousands of UK jobs. However, this success is under threat as foreign firms change their business models. Japanese firm Sony announced it will end production of game discs from 2028, citing shifting consumer trends for its PS5 and upcoming PS6. A petition against this decision has gathered 200,000 signatures.
Digital Rights and Consumer Protections
In the same week, PlayStation removed purchased digital content from account holders due to a licence agreement ending with Studio Canal. Consumers paid full price for these movies but received no refunds. Going forward, PlayStation consumers will have no choice but to buy games through the PlayStation online store, giving Sony control over the entire market. Sony can remove purchased games at any time, and no refunds are allowed once a game is downloaded, even if not played. US-owned Xbox is expected to follow suit, and Steam warns that purchases are only licences that can be revoked.
Rising Costs and AI Data Centres
Console prices have risen sharply: the PS5 went from £449 in 2019 to £569 today, and the PS6 is tipped to cost around $1,000 to manufacture. Xbox Series X launched at £450 and is now £640. AI data centres worldwide are consuming computer components, causing shortages and price spikes. Even Nintendo has announced a price rise for its Switch 2 console. The cost of a 2TB SSD memory drive rose from £165 in 2023 to £269 today. This week, it was reported that AI data centres will be exempt from planning rules, allowing them to bypass local objections. However, each data centre uses consumer-grade components and drinking water, pushing gaming prices higher and potentially damaging the UK's gaming industry.
Call for Government Action
The UK's gaming industry could face a crash as prices rise and options reduce. Evans argues that just as the UK fights for fishing and farming, it should battle to save the gaming industry from collapsing consumer spending, job losses, and reduced tax revenue. He calls on Keir Starmer, Rachel Reeves, and Andy Burnham to rework digital rights laws, protect consumers from digital monopolies, ensure digital refunds, allow consumers to buy from multiple marketplaces, and prevent AI data centres from being built at the expense of other industries. Without action, it could be game over for this vital industry.
