The Association for UK Interactive Entertainment said total retail video game product sales in the UK hit £2.9 billion ($4.5 billion) in 2010, marking the second consecutive year of video game sales decline at UK retail.
The total figure includes the sale of all entertainment software, console hardware and accessories for PC and consoles at UK retail -- burgeoning digital markets are not included. Total unit sales across all products was 93.6 million, down from 114.2 million units last year.
2010's UK retail gaming revenue figures are down 13 percent from 2009's £3.3 billion ($5.1 billion)
, and down 29 percent from 2008's £4 billion ($6.2 billion)
. 2008 was a strong year, with 23 percent year-on-year growth.
Broken down, total 2010 sales of console video game software was £1.45 billion ($2.26 billion). Total revenue for console hardware was £800 million ($1.25 billion) for the year.
Xbox 360 led hardware revenue, generating £232 million ($361.6 million), edging out PlayStation 3's £229 million ($357 million) for the year. Total combined unit sales for the two consoles was 2.3 million, flat compared to 2009. UKIE did not provide sales figures for Nintendo Wii or handhelds.
Xbox 360 also led software sales with £538 million ($838.4 million) and 18.2 million units sold, followed by PS3 with £414 million ($645.2 million) and 13.8 million units sold. Total overall software unit sales were 63 million across consoles and PC, down from 75 million in 2009.
Console and PC accessory sales hit £545 million ($849.3 million) and 25.8 million units during the year, according to UKIE.
Bright spots for the UK in 2010 were similar to U.S. sales highlights, including the release of Activision's massively successful Call of Duty: Black Ops
and the major launches of motion control solutions Xbox 360 Kinect and PlayStation Move.
Separate from retail figures, UKIE cited figures from analyst firm Screen Digest, which estimated UK revenue from social network games was nearly $60 million in 2010.
Mike Rawlinson, director general of UKIE, formerly known as ELSPA, was optimistic about the UK games industry. "Despite 2010 being a tough year for the economy, the video games and interactive entertainment industry continues to perform strongly," he said, also noting games' expansion beyond retail into digital markets.