Physical, 2011-2016 (% of total) Share. Sales to PCs rose 34 percent, while revenue from games downloaded to consoles like Microsoft's Xbox and Sony's PlayStation jumped 32 percent year over year. “The home console market is still growing inside life cycles of six or seven years,” Laurent Michaud, head of IDATE DigiWorld’s video game practice, told Post Arcade via email. The shift from physical to digital for the video game market has been a slow but inevitable one, but the split when it comes to unit sales varies depending on the video game. To determine which route is right for you, you'll need to weigh the pros and cons of both physical and digital games against each other while considering how you plan on playing your games. The Xbox marketplace has crazy good deals. Sources . GamePulse. When you also state for the year 32% digital vs 68% physical. UK physical video game sales in 2019. A common question over the last decade from investors has been: “What is the share for digital versus physical video game sales among publishers and retail stores or platform providers?”. You likely won't get all of your money back, but you will get some cash to put toward that next big game on your list. Joost van Dreunen, CEO of SuperData, told The Huffington Post that digital game sales are trending upward while physical purchases are trending down. Discounts are more frequent. The industry is declining rapidly, as sales of DVDs, CDs and PC games plummet. With the holiday season in full swing, chances are you're buying at least a few video games for a loved one (or yourself, we won't judge). Digital Sales are Beating Physical Sales According to the Latest Sony Data. When deciding between Physical and Digital copies of video games it really comes down to what type of gamer/person you are. New figures show rapid decline of physical games as digital accounts for 74 percent of all sales. Plus, many digital games can be "pre-loaded" once you've pre-ordered them, meaning the entire game will be downloaded and ready to go the second its release date hits. But once you've settled on which games you want, you still have to make another big decision: physical or digital? Video Games United States. Source information is only available to PRO subscribers. Downloading digital games is convenient, but if you don't have a good internet connection, you could end up spending all day installing a single game. Physical media is nice and all, but it can be lost, stolen, or — if you have pets or small children — destroyed. While both digital and physical games go on sale often, you'll typically find the best discounts on physical games. A luxury. I have a CD case for my physical games, but it fills up quickly, so it's much easier to travel with a hard drive. But if you have a decent internet connection, hate dealing with actual people at stores, and want to be able to access your game from anywhere, there's a ton to love about digital games. One of the three client groups I serve with my consultancy Kantan Games Inc. is financial institutions interested in the gaming industry. April 19, 2017. Same goes for PlayStation titles such as Darkest Dungeon and Super Meat Boy, which you can enjoy across your PS4 and PS Vita. The discussion can be almost endless, so factors like sales taxes, a deeper economic comparison of physical vs digital (inventory and return costs for physical games, no second hand market for digital games, costs for managing digital stores, etc.) For a $70 video digital game, this is where the money goes: In the case of physical sales, retailers generally pocket around 30%. Chart Title US Video Game Sales Share, Digital* vs. Industry revenue is expected to decline at an annualised 10.2% over the five years through 2015-16, to reach $1.2 billion. Best answer: If you value convenience, Xbox Play Anywhere, or Game Pass above all, digital is your best bet. For consoles games are often indeed cheaper in physical form, even in the long run. Traditional Sales Methods Before the Coronavirus Pandemic vs. Best answer: Regardless of whether you prefer digital or physical Switch games, there are pros and cons to each option. While you're stuck with digital purchases forever, physical games can be sold back to places like GameStop, Best Buy and Amazon once you're done with them. There's no wrong way to enjoy games, but it's certainly worth keeping in mind the pros and cons of both options. Let’s open our game examination with a peek at Nintendo’s digital Switch offerings. But though digital sales may be up, combined digital and physical sales of PC games were down 21% in the first half of the year, and unit sales were … Sources. Even the free games can have Paid content that also counts as sales. It's also easier to travel with a digital collection. (With that 70% and 100%, respectively, publishers need to cover marketing, the development of the game in question, corporate costs etc.). You don't have to worry about internet speeds. Which is frequent, especially on the PSN. According to the researchers, the growth in digital sales should prove sufficient to offset declining sales of physical media, including game discs and game cards, in the home console market. FIFA 20, the best selling game of the year, only sold 1.5 million units against FIFA 19 ’s 1.9 million. Strangely, information about this important topic for the gaming business is all over the place, outdated or straight-out incorrect. You will receive a verification email shortly. Physical cartridges are the way Nintendo has done portable games … A luxury. There was a problem. Simply saying physical games sales fell in revenue doesn’t consider the multitude of other factors. You can show off your collection. PC gamers have embraced the digital revolution, with physical copies of video games now comprising less than 10% of PC sales. For a $70 physical video game, this is where the money goes: So third-party publishers make $49 on digital and around $35 on physical (40% less). Here's how digital games and physical games stack up in terms of convenience and value. Advertisement. Article. That being said, to be fair you will find times when there are sales on digital copies of video games. Which One is Best for You? So third-party console publishers get around 50% of the full price of a physical game. First-party publishers make $70 on digital and around $45.50 on physical (53.8% less). Here’s how the digital vs. physical game debate shakes out for the Switch. He quotes examples of Luigi’s Mansion: Dark moon, Monster Hunt 4 and Pokemon X/Y and through numbers proves that all these games have ‘strong’ sales across physical and digital versions. Digital purchases have two great things going for them right out of the gate. Despair, ye physical game faithful. Is digital really as dominant as people think? “You can’t pass on digital games. This service covers all distribution channels, including online sales. A newly released chart looking at data compiled from 2014 shows that 52 percent of games are sold via digital formats, while 48 percent are sold via physical formats. They estimate that by the year 2022, revenue from video games will come entirely from digital sales. Digital Copy. New York, Currently According to B2B Professionals in India, April 2020 (points*) Publication Date. Software . Best answer: If you value convenience, Xbox Play Anywhere, or Game Pass above all, digital is your best bet. Physical sales of video and music products are being rapidly substituted for digital content sold by pure online retailers. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. I buy some digital and that is about correct 32% small digital games and old games on huge sale. But as Pachter notes, this shift to digital is not definitive. MORE: The Best Black Friday Tech Deals (Updated Daily). First-party publishers need to calculate with around 5% for manufacturing and shipping the physical media in addition to the retailer cut – leaving Sony, Microsoft and Nintendo with around 65% of the full price. Contact us. © Physical, 2011-2016 (% of total) Publication Date. For more than a decade, video games have been steadily shifting away from physical sales toward digital distribution, much the same as music and film. Most console players prefer physical games over digital downloads The second-hand market is a major factor By Rob Thubron on June 25, 2018, 7:03 … Physical game sales have been smaller and smaller each year, but are they still relevant? You can sell them back. A new report claims that while most gamers recognize digital downloads are the future of games sales, it's going to be a while before digital trumps physical sales on consoles. 18% of respondents say they bought a physical item because it was discounted in store, while 13% said it … Also, believe it or not, game rental services still exist. PS4 vs. Xbox One: Which Console Is Right for You? Digital vs Physical Switch games. New figures show rapid decline of physical games as digital accounts for 74 percent of all sales. Digital sales now represent 74% of the US game market ... shedding light on the continued growth of games in the US. Practically speaking, blue moon sales aside, you should be prepared to pay the full MSRP for any digital Switch games you purchase.