July 5th, 2024

Physical console games are quickly becoming a relatively niche market

Physical console games are declining as digital downloads dominate the market. New physical releases decreased while digital titles increased significantly. Major publishers still prioritize physical releases, but smaller companies are shifting to digital distribution due to lower costs. The trend is evident across PlayStation, Xbox, and Switch consoles, with a rise in digital releases. The data suggests a shift towards digital gaming, making physical console games a niche market.

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Physical console games are quickly becoming a relatively niche market

Physical console games are facing a decline as digital downloads dominate the market, according to an analysis of NPD Game Pulse data by Ars Technica. The number of new physical console game releases dropped from 321 in 2018 to 226 in 2021, while digital titles increased to nearly 2,200 in 2021. Major publishers still prioritize physical releases for flagship titles, but smaller companies are shifting towards digital distribution due to lower costs and risks. The trend is evident across PlayStation, Xbox, and Switch consoles, with digital releases on the rise. While physical games won't disappear soon, the data suggests a shift towards digital gaming. Factors like the closure of digital game stores and the rise of disc-free consoles contribute to the diminishing importance of physical releases. The analysis indicates that physical console games are becoming a niche market, with digital downloads becoming the norm in the industry.

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By @jerlam - 7 months
It's disappointing that the article did zero breakdown of games by either their cost, or by their sales; the only metric was the number of unique games released on physical or digital.

The rise of digital app stores with a lower cost of entry means that all app stores are filled to the brim with shovelware, low-quality software intended to confuse the customer and sell in tiny amounts. This was a problem with physical stores but the barrier to getting a game published and physical items shipped prevented the worst of the worst from ever seeing a store.

There are benefits to digital stores that go beyond convenience of course, like older games can reach a bigger audience when they're drastically marked down, but you run into the discoverability problem when you have a large number of games.