Thick Thighs Save Lives
NeoGAF's Physical Games Advocate Extraordinaire

Nintendo Switch has been the dominant player at physical retail. Sales of new Switch games are still around 80% physical in Europe. That means if Nintendo has a quiet year, which it did in 2024, then that will have a direct impact on the boxed game sector overall.
There may have been fewer Switch games sold, but the platform remains as physical as it's ever been. There wasn't a huge shift in consumers moving away from physical toward digital in 2024 on Nintendo.
Things are different with PlayStation, however. Across Europe in 2023, 55% of games sold on PS5 were downloaded, whereas that number jumped to 64% in 2024 (we're only counting games released digital and physically here, not digital-only releases).
But this is more to do with the types of games released. Some titles are just more digital than others. Online action shooter games tend to do extremely well via download stores. Last year's Warhammer 40,000: Space Marine 2, for instance, saw over 80% of its UK sales come via digital stores. And Sony's own Helldivers 2 was over 90% digital.
That's different for single player, story-driven action games or family titles. Let's take 2023, which had an abundance of these games. 45% of Hogwarts Legacy's sales, 49% of Assassin's Creed Mirage sales and 45% of Resident Evil 4 Remake sales were physical in the UK. Meanwhile, Spider-Man 2 was bought more via physical retailers than digital ones (54% physical), although that does include console bundles.
There were fewer big single-player and family games in 2024. But one of the bigger ones that did launch, Astro Bot on PlayStation 5, was 55% physical in the UK and nearly 60% physical across Europe.
In other words, that sharp decline in physical game sales is less to do with a shift towards digital, and more to do with the release schedule.
That's not to say there hasn't been some shift from physical to digital. If we look at the annual sports titles (where we can do like-for-like comparisons), EA Sports FC 25 was 62% digital in Europe, whereas the year before EA Sports FC 24 was 55% digital (which is by far the biggest shift we've seen). Last year's F1 24 was 70% digital in Europe, whereas F1 23 was 69% digital. And WWE 2K24 in Europe was 64% digital, while WWE 2K23 was 61% digital (note: the newer games all sold fewer games than their predecessors). So, we are seeing digital take a larger market share, but it's not quite as dramatic as the headline figures suggest.
Even so, the data shows that there are still games very reliant on the boxed market. Switch games, retro games, kids games, family games, narrative games on PlayStation… they still see a high proportion of their sales come from the traditional retail sector.
More at the link:

The video game industry is not ready to lose boxed games
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