The latest figures from Chart Track reveal that videogames sales figures for the first half of 2007 are up by 17% on last year's total - bringing the revenue total £519 million.

Hidden within this press release is a word of caution to the UK, who have 'slipped back in the world rankings of games producers in the face of increased pressure from Canada, which provides massive incentives and tax breaks to games companies to produce their games within its borders. New Asian economies such as China are also becoming increasingly attractive to the world’s game superpowers.'

Software sales are also going through the roof with a 19% increase on this time last year, bringing the total number of game units sold to 26.01 million.

Paul Jackson, Director General of ELSPA, said: "We are thrilled to see the industry thriving and not only growing but soaring. With so many excellent titles now available for all ages, appealing to a wide audience the industry is stronger than ever. The speed of the growth of the games industry is testament to the creativity, technology and diversity which is employed by the modern games business."

"The UK plays a huge part in the development of games that sell in the millions around the world. We are a huge part of UK PLC’s Creative Economy, but it is important to note that the future of this buoyant economy is uncertain as tax incentives and cost contributions of up to 38 per cent in other territories around the world are prompting a brain drain and an impact on IP ownership and Balance of Payments contribution." "The UK has spent years building up a significant skills and technology base, but the short and long term outlook as it stands is not good. We once again encourage Government to look at the issues raised by the respected economist Will Hutton in his recent report into UK Creative Industries." On the popularity of games, he added: "With the new generation consoles and new handhelds there are some amazing titles out there and consumers are continuing to enjoy them. There are new and exciting games available and more and more family orientated and mentally stimulating titles to grasp and hold the interest of all ages."

Although final figures have not yet been confirmed, top of the console sales charts so far this year is the Wii with demand still outstripping supply.

Hardware sales for early 2007 together have seen an staggering increase of 51% on units sold on last year’s half-year figures, notching up revenues of £405 million, an 87% increase on the previous year.

The total increase on software, hardware and accessories enjoyed a 42% increase on revenue topping out at an astounding £1,022 million.