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ESA/NPD: 74% of US game market was digital in 2016 (including mobile, etc)
Taking into account the number of digital only games released it actually pretty amazing that Retail still has a 26% share. I mean the real turning point will be the first "AAA" game to launch with only digital. I assume it will be an Online only game like For Honor but indies and smaller companies have already seen the benefits in price flexibility and low overhead that comes with digital only.
Obliterator
Member
Thing is even that only is talking about units.
Digital add on / microtransactions is a massive deal. There are people playing service games like Overwatch, COD, Rocket League, etc. that have spent substantially more on digital add ons than what any of those games cost full priced on day 1.
Plus sharing on Xbox. Having the ability to play a game at the same time as a friend/sibling at the same time with just one copy is an awesome feature only present with digital.
but it has nothing to do with digital vs. physical games sales, which is why i was wondering why they included it.
it doesn't seem honest to lump in "total amount paid for PSN subscriptions" with "digital game sales". maybe i'm reading the graph wrong..?
Obliterator
Member
If a console manufacturer allowed some sort of trade in program for digital licenses towards new digital games it would be pretty crazy to see how much digital full sized games would increase.
A huge amount of people that are still buying physical do so for trade in / resale purposes. I would be very interested in seeing the effect such a platform on digital purchases would affect things.
Because the chart in the OP isn't about physical vs digital game sales? It's about industry revenue
A huge amount of people that are still buying physical do so for trade in / resale purposes. I would be very interested in seeing the effect such a platform on digital purchases would affect things.
Because the chart in the OP isn't about physical vs digital game sales? It's about industry revenue
Skellig Gra
Member
Seems inevitable with mobile being so ubiquitous. I still like physical for consoles personally.
The resale value going to $0 as soon as it is purchased is a pretty big downer.
The resale value going to $0 as soon as it is purchased is a pretty big downer.
Necron
Member
Got asked by a friend why I still purchase games on a disc last weekend... and I was kind of surprised by the question.
I answered that the prices are better and I like having a physical release (if it's available). An all-digital future looks grim in my opinion. How is having access to a single store (e.g. PSN) that has total control over the software you purchased, good in any way? I don't get it.
Edit: it's kind of depressing that graphics are the number 1 reason for a purchase.
I answered that the prices are better and I like having a physical release (if it's available). An all-digital future looks grim in my opinion. How is having access to a single store (e.g. PSN) that has total control over the software you purchased, good in any way? I don't get it.
Edit: it's kind of depressing that graphics are the number 1 reason for a purchase.
it says physical and digital sales right at the top there.
i think what i'm not understanding is the following - on the top chart are they counting a person paying for an XBL subscription as a digital sale?
Interesting that simply 'gameplay' wasn't listed as a determining factor for buying a game.
As others have said, it'd be interesting to see how this broke down for just consoles. I'd expect PC and mobile to skew pretty much all the data, especially in the favor of digital and with the age and gender demographics.
I seriously doubt the largest group of women on consoles are also in the over 50 age group.
As others have said, it'd be interesting to see how this broke down for just consoles. I'd expect PC and mobile to skew pretty much all the data, especially in the favor of digital and with the age and gender demographics.
I seriously doubt the largest group of women on consoles are also in the over 50 age group.
Everyone who dismisses this because they dont see the breakdown of platforms, forgets that their hobby and their "mah physical disks" are declining year to year.
We went from 69% to 26% physical to digital ratio. The market at large shufts to digital. So when the decision comes where to invest, the big companies and more importantly the new blood will develop where they have the biggest audience. (not everyone, mind you, there will always be niche devs)
And the new kids will grow up with mostly digital games.
So what does that have to do with the business-model from Microsoft Sony and Nintendo?
In every thread about digital ratios and the argument why digital cant be cheaper, there are arguments about the NEED of the manufacturers to buddy up with the b&m stores. They sell their consoles.
But what happens if fewer people go to stores and buy digital instead? If fewer and fewer titles have a physical release?
You can either make the argument that brick and mortar stores help promote the console and new releases and are quintessential to the life of a console or that they dont matter in the long run and the console makers are not held hostage pricewise.
If the consoles cant survive without b&m stores and the market goes more and more digital, than the console market will shrink. You cant expect an 8 year old to suddenly love physical games when he is 14 and grew up with phone and tablet games. With 8 he will have probably no say in the use of the family TV with a console that has mostly age 12+ games. With 14 he probably can use the familiy TV more often or has his own. But in those years he grew up on digital games on his phone or tablet.
We went from 69% to 26% physical to digital ratio. The market at large shufts to digital. So when the decision comes where to invest, the big companies and more importantly the new blood will develop where they have the biggest audience. (not everyone, mind you, there will always be niche devs)
And the new kids will grow up with mostly digital games.
So what does that have to do with the business-model from Microsoft Sony and Nintendo?
In every thread about digital ratios and the argument why digital cant be cheaper, there are arguments about the NEED of the manufacturers to buddy up with the b&m stores. They sell their consoles.
But what happens if fewer people go to stores and buy digital instead? If fewer and fewer titles have a physical release?
You can either make the argument that brick and mortar stores help promote the console and new releases and are quintessential to the life of a console or that they dont matter in the long run and the console makers are not held hostage pricewise.
If the consoles cant survive without b&m stores and the market goes more and more digital, than the console market will shrink. You cant expect an 8 year old to suddenly love physical games when he is 14 and grew up with phone and tablet games. With 8 he will have probably no say in the use of the family TV with a console that has mostly age 12+ games. With 14 he probably can use the familiy TV more often or has his own. But in those years he grew up on digital games on his phone or tablet.
Hoho for breakfast
Member
Cool, I figured things were going this way. They had to be. It's moving very quickly too imo. Look at the difference just back in 2010/2011 to now. That's a big shift.
If we could get rid of things like data caps, no refunds, lack of ability to resell etc this could be a good thing. As long as all the caveats exist though, they better keep doing physical for those that want it. Under this idiot president we have here in the US, we'll probably be held back for at least the next few years.
Also (for me at least) the fact that you can buy digital and then play that single copy simultaneously on 2 systems (at least on PS4 and I believe on Xbox) is a huge huge reason that I choose digital even though there aren't as many discounts and such. I really hope they do not take this away. To me it almost makes up for any of the mentioned drawbacks of digital.
If we could get rid of things like data caps, no refunds, lack of ability to resell etc this could be a good thing. As long as all the caveats exist though, they better keep doing physical for those that want it. Under this idiot president we have here in the US, we'll probably be held back for at least the next few years.
Also (for me at least) the fact that you can buy digital and then play that single copy simultaneously on 2 systems (at least on PS4 and I believe on Xbox) is a huge huge reason that I choose digital even though there aren't as many discounts and such. I really hope they do not take this away. To me it almost makes up for any of the mentioned drawbacks of digital.
yup, that's me. The only physical I've bought in YEARS are CE/LEs. If it's a plain jane release, digital all the way.
I'll even throw the physical die hards a free smh. Even if I can get the physical version for like $20 or the digital for like $30 (because of a sale or something), I'll STILL grab the digital.
Simply can't be assed to have a physical collection anymore. After 30+ years of gaming, this shit takes up way too much room.
I'll even throw the physical die hards a free smh. Even if I can get the physical version for like $20 or the digital for like $30 (because of a sale or something), I'll STILL grab the digital.
Simply can't be assed to have a physical collection anymore. After 30+ years of gaming, this shit takes up way too much room.
bigdaddygamebot
Member
I buy only digital now. I have a slow internet connection. I buy a disc based game. I get home. I need to download a patch. Now I'm not playing it until the next day.
If I buy digital. Most likely I'm playing it the next day but sometimes the same day and it's simply less clutter around the house.
If I buy digital. Most likely I'm playing it the next day but sometimes the same day and it's simply less clutter around the house.
ghostwritingduck
Member
Smartphones and Steam have changed the way I thought about games. I buy most of my games digitally when they're on sale. Also, aren't some major games digital only? Did Rocket League get a retail release?
MatPiscatella
Member
What do you mean by "inflating"? Gaming spend is gaming spend. Mobile gaming spend is just as valuable dollar for dollar as any other gaming spend.
It's really easy to say what it means... it means that more % of spend is digital now than before.
And what do you mean "by platform"?
Actually, removing 100% digital platforms would make the info far less interesting. Consoles & Portable traditional gaming platforms are now niche.
Absolutely baffling conclusion to draw from this data. But you do you.
A dollar spent is a dollar spent. The chart is in regards to share of spending on physical vs digital platforms. A dollar spent on an XBL subscription is a dollar spent on digital gaming products.
GarthVaderUK
Banned
Seems MS is potentially positioning themselves well with Scorpio in the US, with the largest factor influencing game purchases being the quality of graphics and the most popular games these days being mutliplatform games. Looks like price is also important though, so they'll not want to go too crazy on that.
Internet infrastructure continues to improve in most countries so I'm not surprised to see this growth.
Personally I've only purchased 3 games physically, while the rest (over 30 games) were digital from new releases and sales. Now that MS have the refund policy coming out, it makes things even better. The reason I went digital was because I wanted to have access to my library of games all the time especially on forward consoles. I suppose my purchases have been vindicated with Scorpio coming out and improving upon them in particular ways.
On other platforms I can see Switch contributing to this via DLC packs and the eStore, hopefully incentivise Nintendo to improve their internet capabilities. Hopefully this trend continues and lowers digital prices, or more frequent sales.
Personally I've only purchased 3 games physically, while the rest (over 30 games) were digital from new releases and sales. Now that MS have the refund policy coming out, it makes things even better. The reason I went digital was because I wanted to have access to my library of games all the time especially on forward consoles. I suppose my purchases have been vindicated with Scorpio coming out and improving upon them in particular ways.
On other platforms I can see Switch contributing to this via DLC packs and the eStore, hopefully incentivise Nintendo to improve their internet capabilities. Hopefully this trend continues and lowers digital prices, or more frequent sales.
Autoignition
Member
I'd be interested to see these numbers with just console core games, to be honest. DLC has to inflate numbers because they don't come out on discs. Same with mobile games, Steam games, etc. What are full console owners doing with their purchases for games?
I think (if memory serves) this was something in the works with MS and their digital proposition for Xbox One. They goofed up the message (and timing for such an idea) obviously, but the concept is neat and holds serious potential.
NOLA_Gaffer
Banned
The biggest factor influencing the decision to purchase a video game is quality of the graphics.
Thusly third-party publishers are going to go all-out pushing shiny graphics in an effort to sell their software.
Guess which platform isn't so hot in regards to parity?
Not sure how that's a baffling conclusion.
The Abominable Snowman
Member
Digital will be the norm in 2-3 years, if it isn't already. Plebians with less than 1TB (or 256GB mobile) will have a tougher and tougher time.
MissCauthon
Member
In 2016 to this exact date all my game purchases were digital for me. Except for Zelda on Switch which I bought the collectors.
I do all my buying during flash sales.
This time arround I have Absolutely NO plans on selling my PS4 Pro when the next gen consoles come out.
I might be Switching to XBox tho for the scorpion and their reimbursing policy.
I do all my buying during flash sales.
This time arround I have Absolutely NO plans on selling my PS4 Pro when the next gen consoles come out.
I might be Switching to XBox tho for the scorpion and their reimbursing policy.
ethomaz
Banned
When talking about Digital vs Retail makes the info IMO biased because you don't have the choice between Retail or Digital in 100% Digital options... so it is not now how strong Digital is growing over retail or what exactly situation the retail market is facing.
And niche is not the right word I may choose to describe $6.37b even if it is 26%.
Let's see how things will go after Switch release that is focused more in retail than digital (due memory space limitations).
Taliban Stan
Member
I wish the data set had a chart for digital vs physical on games/content available on both.
While true and I thought that as well, the charts is just about market, not unit sales or some per title analysis or units sold. It's just the market and how much do digital markets generate vs physical markets, not what percentage of sales on a game come from physical copies vs digital copies.
While true and I thought that as well, the charts is just about market, not unit sales or some per title analysis or units sold. It's just the market and how much do digital markets generate vs physical markets, not what percentage of sales on a game come from physical copies vs digital copies.
GarthVaderUK
Banned
I've also gone 100% digital purchases over the last few years, it's not only far more convenient but I've also ended up with significantly more games for my money compared to the 100% physical days of olde.
MatPiscatella
Member
The graph highlights share of total market spending. You want the graph to answer questions that the data provided makes no attempt at addressing.
BigEmil
Junior Member
Yup.
brickarts295
Member
This is what I do. Honestly, Sony,MS and Nintedo should take a leaf out of BB/Amazon's book and have a 20% discount on digital games if you have PS+/Gold/Nintendo Online.
Watch how everyone jumps in the digital train just like that.
Deputy Moonman
Member
Did we ever get the digital game sale numbers for Halo 5? Man it was mocked quite a bit for lower physical sales numbers than previous halo games. But if you tried to argue that digital sales were likely more than 30% you were laughed at even more. I think this confirms that digital sales have become widely accepted thanks to the mobile platform as well as steam. A lot of console games probably come close to 40-50% digital sales. Of course I have absolutely no evidence to back it up, but it isnt a completely illogical thought anymore.
LordBaztion
Member
Well, I am only digital since 2015. Services like EA Access helped a lot.
ChronotriggerJM
Member
Sounds about right. Digital is an amazing distribution outlet both for full titles and added content.
Also, am I the only person who's using their PS4 as a secondary console so my brother in another state can play games I purchase?
Also, am I the only person who's using their PS4 as a secondary console so my brother in another state can play games I purchase?
Shpeshal Nick
aka Collingwood
Edit. Wrong thread.
I think it's more that there's a lot of very young people on Gaf that think being in your thirties makes you 'old'.
Yep. The data people are looking (grasping) for is readily available month after month in NPD threads. Several months in recent years have highlighted a YoY decline in console physical revenue, with handhelds faring far worse. The ESA/NPD report providing YoY console physical vs console digital revenue would be nice, but it would just be a reflection of what the overall industry numbers say.
This is our reality.
Goldenroad
Member
So this is more "game revenue" as opposed to numbers of copies sold.
I mean, I'm sure GTA V sold way more physically than digitally, and I'm also sure that they make more money off IAP's than through copies of the game being sold.
I just wonder if you created a chart of how people are actually purchasing games that are available phyiscally and digitally, if these numbers would look completely different, but obviously the real money is in the DLC/microtransactions/IAP's and I guess people are voting with the wallets and saying that is what they want out of video games.
I mean, I'm sure GTA V sold way more physically than digitally, and I'm also sure that they make more money off IAP's than through copies of the game being sold.
I just wonder if you created a chart of how people are actually purchasing games that are available phyiscally and digitally, if these numbers would look completely different, but obviously the real money is in the DLC/microtransactions/IAP's and I guess people are voting with the wallets and saying that is what they want out of video games.
dragonyeuw
Member
Getting into PC gaming 2 years ago made me comfortable with the idea of a digital library. Previously I was 'physical or nothing!' But for me it was digital done right since my steam games are on a hardware agnostic platform.
On the console side of things, I was about 50/50 but now I"m like 80/20 digital. It wasn't a conscious decision, it just sort of happened. PSN sales have gotten much better this gen( not quite as good as steam/GOG etc, but good enough), and I usually wait till a game is like $25 or less to buy digitally. At that point I'm not worried about 'resale' value because by the time I'm likely done with the game or want to sell off a physical copy, it's in the '2 for $10' gamestop and target clearance bins. Not much reason for me to keep around a ton of physical boxes/discs worth pennies. I've actually sold off a few physical copies that I initially bought cheap( recently Last of Us remastered) just so I could pick it up for $8 off last week's PSN sale. I'm debating doing the same thing with Uncharted 4, which would leave a sealed copy of Diablo III as my lone physical PS4 game( that game never seems to go on sale, for whatever reason).
On the console side of things, I was about 50/50 but now I"m like 80/20 digital. It wasn't a conscious decision, it just sort of happened. PSN sales have gotten much better this gen( not quite as good as steam/GOG etc, but good enough), and I usually wait till a game is like $25 or less to buy digitally. At that point I'm not worried about 'resale' value because by the time I'm likely done with the game or want to sell off a physical copy, it's in the '2 for $10' gamestop and target clearance bins. Not much reason for me to keep around a ton of physical boxes/discs worth pennies. I've actually sold off a few physical copies that I initially bought cheap( recently Last of Us remastered) just so I could pick it up for $8 off last week's PSN sale. I'm debating doing the same thing with Uncharted 4, which would leave a sealed copy of Diablo III as my lone physical PS4 game( that game never seems to go on sale, for whatever reason).
paragonpro
Banned
I went digital and never looked back with the exception of the occasional steelbook. Its nice having every game just ready to start without the need to remove a disc and it makes sense this generation where more and more games are treated like a service. I got Zelda physical so i could just play immediatley when i got my system but ill never change out another card in that thing, and if there is a mario special edition ill likely just go physical and digital
Radical Edward
Member
If you're a shut in...