The average price of video games rose during 2012 by 3.2 per cent to £26.45 according to data from sales monitor Chart Track.
The data, published by the ERA, showed that prices climbed for a consecutive year.
It also emerged that supermarkets have overtaken then internet as the cheapest place to buy video games. The ERA pointed to the recent closure of the Jersey VAT loophole as the main reason that supermarkets have emerged as the cheapest place to buy games.
According to the data, the average price of games online rose by just under £2 from £23.56 to £25.52. Despite the rise, they are still cheaper than the average price.
Specialists and independent outlets remained the most expensive place to buy games, with average prices rising by 81 pence to £27.82 over 2011's prices.
The report also showed that online retailers and supermarkets have continued to gain on the high street, increasing their market share by just over 2.5 per cent to 29.5 per cent and 28 per cent respectively.
Retail remains the largest source of games for UK shoppers, accounting for 42.5 per cent of all revenue last year. However, that was down 4.5 per cent on 2011, with the ERA pointing to the closure of hundreds of specialists game stores during the year.