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EA expects console game sales to be 40% digital this year

statham

Member
The growth of full game downloads in the console space has surprised EA, the firm says.

The company told investors during its Q&A - as transcribed by Seeking Alpha - that full game downloads accounted for 33% of unit sales. That's considerably ahead of the firm's previous estimate of 29%, and 9% higher than the figure it posted last year.

The firm says the chief driver was "the continuing evolution of consumer behaviour. but some of the outperformance was driven by the shift from Star Wars Battlefront to Battlefield 1, as well as the digital performance of our catalog."

It expects full game downloads will account for 38% of its console unit sales during 2017.

However, EA's CFO Blake Jorgensen anticipates that for the whole industry the figure will be even higher - around 40%. This is because EA's big titles, such as FIFA, often perform strongly in markets with slower digital uptake.

continued here
http://www.gamesindustry.biz/articl...game-sales-to-be-40-percent-digital-this-year

Its happening.
 

ArtHands

Thinks buying more servers can fix a bad patch
It seems like a "told you so" scenario. People are switching to the digital future 😉
 

Kill3r7

Member
I think we will get close to 50% threshold by the end of this gen. If one of the console manufacturers were to take the plunge and offer 20%off new digital purchases for Gold or PS+ members then I could easily the figure being greater than 50%.
 

Footos22

Member
I'd happily buy everything digital if refunds were system wide. Digital games in the UK aren't 20 quid more then retail etc. But yeah that ain't ever gonna happen.
 

Trup1aya

Member
It should also be noted that some publishers are already at 40% digital. Also, using the standard $42/$60 take home for digital vs the $25/$60 take home for physical, digital sales will have become the revenue leading media for many publishers as soon as digital reached 38%.

For those wondering why digital prices dont drop with physical - there's your reason.
 
I have been all digital ever since the launch of PS4. I love my built up digital library. It also helps that I have 300mbps down and no data cap.
 

Synth

Member
What is the benefit of 100% digital on console? Weird thing to look forward to.

Well, not so much 100% digital, but it being the significant majority (as with other forms of media). I don't like how beholden the games market is to retailers, so you get things like MS having to bump the prices of their digital titles back up shortly after launch in order to not piss off the retailers they rely on for console sales.

Also, I'm one of the few that would have preferred the original XB1 offering. I have no physical games at all, so went they reverted back to the standard model of last gen, it's a bet loss for me in regards to my digital options.
 
One day it will be 100%

Only when game prices are lowering in Europe. New AAA games costs 70 euro in Belgium, while you can mostly buy them at 53 euro in stores (let alone the used market).

It's not happening anytime soon imo. The second hand market in Belgium for example is still very healthy. People like trading their games in and/or lending them to friends.
 
What is the benefit of 100% digital on console? Weird thing to look forward to.

I see the benefits as: more money to the developer and publisher (no retailer to take a cut) which is important as game dev costs keep increasing; bigger digital store footfall for Indie developers, which is great for them since most don't have any retail presence at all; less impact on the environment since there's no physical production and no shipping involved, but I'm an ecologist so I'm biased towards this one being the best =P

However, I know a lot of gamers love retail for the stores competing with price cuts (something digital stores exclusive to Sony and MS won't have), as well as the second hand market being essential for budget gamers. So I think until Sony and MS can sort out a way of fair digital distribution practices that allows for price competition and prices on older games matching second hand prices it isn't beneficial enough to all consumers. It only benefits those of us who can afford to pay $30-60 on all our games. Gamers who like to pay $10-30 are screwed by digital in its current implementation.
 
I buy digital games when they're priced well, like all the first-party Sony games at €59.99 which matches retail. Never paying €69.99, stop charging that much.
 

Gurish

Member
Can anyone explain why?

I mean sure as someone who is from Europe it makes sense that I will sign up for the digital US store and buy my games from there since it's cheaper, but I'm sure there are only few who are like me and the vast majority consists of people who actually choose to buy digital even though:

1) it's more expensive or as expensive
2) No physical box and manual so you can't build a nice collection on your shelf or enjoy looking at the box on your way home and enjoy that new game smell ;)
3) You can't really loan it to your friends or trade it with them (and no sharing your user name and pass to a friend is not a good enough solution)
4) You can't sell it
5) No refund or trade in like you can with a physical copy at the store
6) Most of the time you are actually getting it later than most since lots of places breaks embargos
7) Always having that fear that someday your digital games won't be supported

Resons to buy digital:

1) No need to get out to the store
2) No need to switch discs

Hmm is it me or physical currently is like>>>>>>>>>> over digital?

And still so many people still choose digital, it's baffling.
 

JayEH

Junior Member
Well, not so much 100% digital, but it being the significant majority (as with other forms of media). I don't like how beholden the games market is to retailers, so you get things like MS having to bump the prices of their digital titles back up shortly after launch in order to not piss off the retailers they rely on for console sales.

Also, I'm one of the few that would have preferred the original XB1 offering. I have no physical games at all, so went they reverted back to the standard model of last gen, it's a bet loss for me in regards to my digital options.

Well I doubt games would become cheaper if there was no longer retail. There's no competition then since consoles are closed platforms.

Can anyone explain why?

I mean sure as someone who is from Europe it makes sense that I will sign up for the digital US store and buy my games from there since it's cheaper, but I'm sure there are only few who are like me and the vast majority consists of people who actually choose to buy digital even though:

1) it's more expensive or as expensive
2) No physical box and manual so you can't build a nice collection on your shelf or enjoy looking at the box on your way home and enjoy that new game smell ;)
3) You can't really loan it to your friends or trade it with them (and no sharing your user name and pass to a friend is not a good enough solution)
4) You can't sell it
5) No refund or trade in like you can with a physical copy at the store
6) Most of the time you are actually getting it later than most since lots of places breaks embargos
7) Always having that fear that someday your digital games won't be supported

Resons to buy digital:

1) No need to get out to the store
2) No need to switch discs

Hmm is it me or physical currently is like>>>>>>>>>> over digital?

And still so many people still choose digital, it's baffling.

You may have only listed two points for why someone would buy digital but for most those are actually huge factors. Can't underestimate convenience.
 
Can anyone explain why?

I mean sure as someone who is from Europe it makes sense that I will sign up for the digital US store and buy my games from there since it's cheaper, but I'm sure there are only few who are like me and the vast majority consists of people who actually choose to buy digital even though:

1) it's more expensive or as expensive
2) No physical box and manual so you can't build a nice collection on your shelf or enjoy looking at the box on your way home and enjoy that new game smell ;)
3) You can't really loan it to your friends or trade it with them (and no sharing your user name and pass to a friend is not a good enough solution)
4) You can't sell it
5) No refund or trade in like you can with a physical copy at the store
6) Most of the time you are actually getting it later than most since lots of places breaks embargos
7) Always having that fear that someday your digital games won't be supported

Resons to buy digital:

1) No need to get out to the store
2) No need to switch discs

Hmm is it me or physical currently is like>>>>>>>>>> over digital?

And still so many people still choose digital, it's baffling.

EA speaks about unit sales if I understand the OP correctly. Digital is perfect for games older than a year. They can make cheap bundles with DLC or other games etc. At that point there's no real need for retail.
They were selling Dragon Age Inquisition for like 6 euro a few weeks ago, so that probably sold quite a lot of copies.
 

120v

Member
Can anyone explain why?
<snip>
.

people just want to play games. they don't scrutinize the means of doing so like people on a gaming forum would.

"gee the new CoD looks cool. well let me just put in my credit card number so i can play it"
 

Tyaren

Member
What is the benefit of 100% digital on console? Weird thing to look forward to.

I also dont get it. I never will. Many people actually like to have a physical representation of what they bought. They want to hold it, feel it, collect it. What about all these special editions with steelbooks, art books and figurines? None of that anymore or do they all come without the actual game in the future?
And then there's the fact that many still don't have great internet connection and in the coming console generations the amount of data in games will increase drastically. Say hello to downloading for days. I sometimes already have to wait for 6-8 hours to download a 20 gigabyte digital game.
 
Well I doubt games would become cheaper if there was no longer retail. There's no competition then since consoles are closed platforms.

I agree, it's probably a myth that new AAA game prices will go down, if there would be no retail.
Like you said, why would Microsoft and Sony lower the prices if there's no real competition.
 
Can anyone explain why?

I mean sure as someone who is from Europe it makes sense that I will sign up for the digital US store and buy my games from there since it's cheaper, but I'm sure there are only few who are like me and the vast majority consists of people who actually choose to buy digital even though:

1) it's more expensive or as expensive
2) No physical box and manual so you can't build a nice collection on your shelf or enjoy looking at the box on your way home and enjoy that new game smell ;)
3) You can't really loan it to your friends or trade it with them (and no sharing your user name and pass to a friend is not a good enough solution)
4) You can't sell it
5) No refund or trade in like you can with a physical copy at the store
6) Most of the time you are actually getting it later than most since lots if places breaks embargos
7) Always having that fear that someday your digital games won't get supported

Resons to buy digital:

1) No need to get out to the store
2) No need to switch discs

Hmm is it me or physical currently is like>>>>>>>>>> over digital?

And still so many people still choose digital, it's baffling.

1. I buy games at launch or when they are heavily discounted on psn. Often cheaper then physical.
2. No pesky boxes or manuals to clutter up my home. It's pointless.
3. My friends are 30 and don't live in the same state as me so I can't loan them anything. I do game share with my brother. Every game I buy he can instantly play and vice verse
4. I don't have a need/want to sell video games I like to go back and play later.
5. I don't support game stop at all so I don't do trade ins. Plus I have money for games I want.
6.No mom an pop stores near me. No where breaks street date around here so it's a non factor. I can have a game installed and ready right at launch at midnight.
7. That fear is kinda real but I don't think it'll happen anytime soon. I'll deal with it when it comes.

All digital since PS4 launched. 50% digital on PS3.
 
people just want to play games. they don't scrutinize the means of doing so like people on a gaming forum would.

"gee the new CoD looks cool. well let me just put in my credit card number so i can play it"

But we're talking about 70+ euro payments. How many people really buy such expensive things without thinking about it.
 
Can anyone explain why?

I mean sure as someone who is from Europe it makes sense that I will sign up for the digital US store and buy my games from there since it's cheaper, but I'm sure there are only few who are like me and the vast majority consists of people who actually choose to buy digital even though:

1) it's more expensive or as expensive
2) No physical box and manual so you can't build a nice collection on your shelf or enjoy looking at the box on your way home and enjoy that new game smell ;)
3) You can't really loan it to your friends or trade it with them (and no sharing your user name and pass to a friend is not a good enough solution)
4) You can't sell it
5) No refund or trade in like you can with a physical copy at the store
6) Most of the time you are actually getting it later than most since lots of places breaks embargos
7) Always having that fear that someday your digital games won't be supported

Resons to buy digital:

1) No need to get out to the store
2) No need to switch discs

Hmm is it me or physical currently is like>>>>>>>>>> over digital?

And still so many people still choose digital, it's baffling.

That's a mindset thing. Despite having a glass cabinet I use to display some Collector Editions of games (TES, Witcher, Final Fantasy) I hate cluttering up my house with normal game boxes, DVDs, music CDs etc. The lack of a physical item is genuinely a benefit to me.

I also believe digital games are safer long-term than physical. I found my Pokemon Yellow cartridge last christmas and tried playing it in an old game boy. The game boy worked, but the cartridge didn't. So at the moment if you want to play a backlog of titles you need to keep around all the old hardware (and again, I hate clutter =P) and hope the game itself isn't damaged by time or wear and tear. If consoles can move to a PC-like library, where all digital games you buy will not only (obviously) be immune to damage, but most importantly also work on future console generations (and that's key to success of digital imo) then I think the fear of digital libraries being deleted is a far less likely scenario than the fear of physical games simply being too old to work.
 
When I can get games for a 20% discount like I do at BB and Amazon, I'll start buying more digital games. I'm probably at 15% digital, but most of that is GWG or PS+. PC is the only platform I'm all digital on.
 

Wiped89

Member
Well, not so much 100% digital, but it being the significant majority (as with other forms of media). I don't like how beholden the games market is to retailers

LOL do you know how competition works? Multiple retailers means lower prices.

Having just one digital storefront for each console means no competition which means prices start high and stay high.

Right now there are games on the PS and Xbox stores with £54.99 asking prices which can be had for under £20 in shops on disc.
 
I would love to see digital attach rates further broken down by age and other criteria. Really curious to see how attach rates vary by age, gender, income etc
 

Bluth54

Member
EA speaks about unit sales if I understand the OP correctly. Digital is perfect for games older than a year. They can make cheap bundles with DLC or other games etc. At that point there's no real need for retail.
They were selling Dragon Age Inquisition for like 6 euro a few weeks ago, so that probably sold quite a lot of copies.

On PC it's actually possible to find new AAA for less than retail if you buy game keys outside of the DD client. I bought Prey from CDkeys.com for $37 the day after it came out.

Valve lets developers and publishers make unlimited steam key for free and sell them without Valve getting a cut. As far as I know Sony and Microsoft don't let keys get created for free to be put up for sale outside PSN/Xbox Live (you may be able to create keys but I do believe Microsoft and Sony still get their cut, usually with kickstarters the console version digital editions cost more than PC because of this).
 
Can anyone explain why?
...
And still so many people still choose digital, it's baffling.

I play mainly on PC with a side dish of PS4 for exclusives like Persona 5. "Reasons to buy" #1 outweighs all 7 cons.

Seriously. If I go to store, there is no guarantee that the stores even have the game I'm looking for. Even game stores around here have no sense in what games should be stocked and what shouldn't. That leaves ordering online with delivery. But I live in an apartment building with a building front door that is locked with a keypad. Delivery guys around here are completely unable to handle it and they will just send me "tried to deliver but failed" notices. Which means I have to get the online order delivered to nearest postal office and wait X days that it arrives.

Or I could just buy the game from store with few clicks and then do something else for an hour or two while the game downloads.
 

Tmecha

Neo Member
Want to go digital but living in Australia I don't like paying $100 for new releases when Jb or bigW have them around $70 or cheaper at launch.

I'll stick to buying digital for indies or major sales.
 

StuffRuff

Member
This trend gives me a warm fuzzy feeling. Hopefully before long discs will be long and dead and the prices of console digital games will start to get competitive like PC games have.
 

120v

Member
But we're talking about 70+ euro payments. How many people really buy such expensive things without thinking about it.

yes games are expensive, digitally there's less impulse to stream a movie or download an album. obviously why majority of sales are physical or at least a major factor

but the average person doesn't Day One every single AAA release. when you're dropping 70 euros just a handful of times a year it isn't so much a factor that you can't trade in, trade with friends, get a markdown at a brick n mortar a month later, ect
 
I would love to see digital attach rates further broken down by age and other criteria. Really curious to see how attach rates vary by age, gender, income etc
Me too. I have a suspicion that digital sales are mostly older people who don't have time to go trade in games often and generally have more disposable income. I could be totally wrong and it could be the young ppl who are more used to digital media so they don't cling to the physical past like older gamers do. Nobody is impressed by your DVD/bluray/ game case collection. It looks tacky lol.
 

Floody

Member
Wouldn't be surprised, I was a "never gonna go digital" guy before the gen started and now the vast majority of my library is digital (even without including Plus and GWG stuff), I just keep buying shit when they go on sale. This year I've only bought 1 physical game with Horizon and about 10 digitally.
 

Kill3r7

Member
Can anyone explain why?

I mean sure as someone who is from Europe it makes sense that I will sign up for the digital US store and buy my games from there since it's cheaper, but I'm sure there are only few who are like me and the vast majority consists of people who actually choose to buy digital even though:

1) it's more expensive or as expensive
2) No physical box and manual so you can't build a nice collection on your shelf or enjoy looking at the box on your way home and enjoy that new game smell ;)
3) You can't really loan it to your friends or trade it with them (and no sharing your user name and pass to a friend is not a good enough solution)
4) You can't sell it
5) No refund or trade in like you can with a physical copy at the store
6) Most of the time you are actually getting it later than most since lots of places breaks embargos
7) Always having that fear that someday your digital games won't be supported

Resons to buy digital:

1) No need to get out to the store
2) No need to switch discs

Hmm is it me or physical currently is like>>>>>>>>>> over digital?

And still so many people still choose digital, it's baffling.

I think the main reason outside of convenience as to why people buy digital is that most everything else in their lives is digital, from music to movies and to TV. People are slowly but surely becoming accustomed to it. Personally I started to make the switch to digital when I realized that I could buy PSN or XBL credit at a 20-30% discount. Also, collectors items and kids do not play well together.
 

Shiggy

Member
This trend gives me a warm fuzzy feeling. Hopefully before long discs will be long and dead and the prices of console digital games will start to get competitive like PC games have.

I think you don't need an economics degree to know that having a monopoly will not make game prices decrease. Prices of PC games are competitive as users have multiple stores to choose from. Prices of retail games are competitive as users can choose to buy from multiple retailers. Prices of digital console games are not competitive as each platform only has a single vendor.
 

Donos

Member
Although i often see that physical copies are (way) cheaper, and i can also sell them, i started to buy everything digital (on sales) since i really don't like getting up and changeing disk anymore when jumping between 3 games in short time.

Also my little kid puts the disks out and bends them so i try to avoid it.
 

Trup1aya

Member
Can anyone explain why?

I mean sure as someone who is from Europe it makes sense that I will sign up for the digital US store and buy my games from there since it's cheaper, but I'm sure there are only few who are like me and the vast majority consists of people who actually choose to buy digital even though:

1) it's more expensive or as expensive
2) No physical box and manual so you can't build a nice collection on your shelf or enjoy looking at the box on your way home and enjoy that new game smell ;)
3) You can't really loan it to your friends or trade it with them (and no sharing your user name and pass to a friend is not a good enough solution)
4) You can't sell it
5) No refund or trade in like you can with a physical copy at the store
6) Most of the time you are actually getting it later than most since lots of places breaks embargos
7) Always having that fear that someday your digital games won't be supported

Resons to buy digital:

1) No need to get out to the store
2) No need to switch discs

Hmm is it me or physical currently is like>>>>>>>>>> over digital?

And still so many people still choose digital, it's baffling.

Most of your points mean nothing to me.
1) the convenience is worth the added cost
2) I don't want the added clutter of a collection
3) I don't share my games (no one to share with), there's redbox if I want to try something out
4) I don't buy games that I don't intend to keep well beyond the point where the resale value is gone
5) same as 4
6) this depends completely on the retailers near you. I know of none that break embargoes, and playing a few days early really doesn't matter in the grand scheme of things. I value the ability to preload more.
7) your feeling isn't based on any objective reality. I'm on Xbox One playing 360 games I downloaded 10 years ago. Any 360 games that aren't BC on xb1 still work on 360.

Bonus: the sheer number of digital games I get from EA Access and GWG has reduced my overall annual spend, and likely offsets any savings I would have had buying physically.

If your Baffled it's because you are struggling to impose your value on others. The moral of the story is, different business models will work for different people- just like in any other industry. That shouldn't be a surprise.

PS as I've gotten older, I've found the trade-in cycle to be a giant waste of money so im surprised people still view it as a benefit of physical. Prey just came out, for example, and GameStop will only give you $25 for it. It's much cheaper to just rent Prey. If you sell direct to the next party you can recoup more, but the difference would resemble the cost of renting... which is less hassle than trying to find a buyer.
 

RossoneR

Banned
I dont get digital pricing.
With physical( 60 euros) retailer get like 10 to 15 euros, so why is digital version 70 or more without middle hand?

Only thing i can think of is that sony/ms wants to keep gamestop happy so they sell their hardware.
 

Trup1aya

Member
I dont get digital pricing.
With physical( 60 euros) retailer get like 10 to 15 euros, so why is digital version 70 or more without middle hand?

Only thing i can think of is that sony/ms wants to keep gamestop happy so they sell their hardware.

I partially explained it to above. A massive 40% of the market is willing to buy games digitally at full price. Since publishers get at 70% cut, they are bringing in more revenue from digital than physical.

why would you sell something for less than what people are willing to pay? That would be mean devaluing your own IP.

If publishers slashed their digital prices, they'd be trading high profits in exchange for simply moving customers from one medium to another with no added benefit- essentially throwing money away.

On top of that it would piss of retailers, giving them no reason to buy and advertise games.
 
I have quite literally not set foot in a game store in about four years.

Toward the end of last ten I was already going digital.

This gen, I have downloaded every game I own from the consoles stores.
 

Moze

Banned
Is this full price AAA games or does it include the often quite good PSN sales?

And does it include bundles?
 

redcrayon

Member
Is this full price AAA games or does it include the often quite good PSN sales?

And does it include bundles?
As they refer to 'full game downloads' and 'digital performance of our catalog' rather than 'full price', I assume it includes the heavily discounted digital back catalogue on PSN etc. Much better for them than taking nothing from retail second-hand sales.

The firm says the chief driver was "the continuing evolution of consumer behaviour. but some of the outperformance was driven by the shift from Star Wars Battlefront to Battlefield 1, as well as the digital performance of our catalog."
 

redcrayon

Member
This trend gives me a warm fuzzy feeling. Hopefully before long discs will be long and dead and the prices of console digital games will start to get competitive like PC games have.
That's not going to happen with the closed console digital stores. Console owners will only have one place to buy games from, unlike PC customers. Why be competitive when you have no competing sites driving the price of the exact same product down.
 
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