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ESA/NPD: 74% of US game market was digital in 2016 (including mobile, etc)

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.

The graph highlights share of total market spending. You want the graph to answer questions that the data provided makes no attempt at addressing.

Exactly right. Unfortunately a lot of people only cate about seeing how many units specific games sell and not the overall picture and trends of the industry. Looking at total digital spend is hugely important in understanding the health of the industry and the directions it's heading in. Not just how many units game x sells
 
I've vowed that I'd never go digital and have been all physical on my PS4 with the exception of digital only games. However, later this year I'm probably going to pick up an Xbox 1 for exclusives and seriously considering going digital only on that platform just to see how well I like the convenience.
 

gamz

Member
I've vowed that I'd never go digital and have been all physical on my PS4 with the exception of digital only games. However, later this year I'm probably going to pick up an Xbox 1 for exclusives and seriously considering going digital only on that platform just to see how well I like the convenience.

Why on the Xbox and not on the PS4?
 

carlsojo

Member
I'm such a lazy sack of shit. My primary reason for shifting to digital is that I don't want to mess with putting the disc in/switching discs to play a new game.
 

levious

That throwing stick stunt of yours has boomeranged on us.
If you aren't interested in this survey, why are you posting in this thread? The continual shit posting of people who come in and ignore the actual topic, to complain that it's not the topic they wanted to see, is going to stop now, one way or the other.


Yeah this thread got useless real fast. I will never understand the defensive nature of people who consider themselves real gamers.
 

Endo Punk

Member
This gen I'm still sticking with physical but next? I can see myself embracing the digital future, I still buy digital games but only the ones which release digitally first/only. I love seeing collection of discs but as I grow old I'm beginning to value convenience.
 

ghibli99

Member
Sign of the times. Not surprising as a trend, but the % growth we're seeing just over one generation is pretty impressive.

The convenience factor has not gotten to the point where I'd rather buy it vs. physical via Prime or GCU, but if companies make it more compelling and open like things are on PC, I'll happily switch. Not much chance on the "open" part, but if we saw more launch discounts on console, I'd at the very least consider the digital option.
 

besada

Banned
Maybe the poster was expecting a platform breakdown on the survey? I really don't see how that post is shitposting. Mobile is obviously a part of the industry, and digital attach rate has been on the rise, butIt would be interesting to see how much exactly on consoles without having taking Mobile into account since it may inflate the numbers.

When you come in and complain that the survey, which is what it is, isn't what you want it to be, and is therefore not worth commenting on, you've added nothing to the conversation, which means you're shit posting.

If this survey doesn't contain information that interests you, just don't post. No one cares if you think it would be a better survey if it was a different survey. It's not going to magically turn into a different survey.

Every time we have one of these surveys show up, the threads fill with jackasses saying they don't care because it doesn't break out console gaming, which is the only thing they do care about. It's fine not to care about other sectors of gaming. It's not fine to shit up threads discussing them by pointing out that you only care about your sector of gaming, whatever that is.
 
I switched to digital only a year or two ago. Haven't looked back. I used to be a buy/beat/and sell guy but convenience trumped all in the end.
 
Digital versus physical is changing at an alarming rate and we are going to need some laws put in place to protect the consumers rights on these products.
 

Fandangox

Member
When you come in and complain that the survey, which is what it is, isn't what you want it to be, and is therefore not worth commenting on, you've added nothing to the conversation, which means you're shit posting.

If this survey doesn't contain information that interests you, just don't post. No one cares if you think it would be a better survey if it was a different survey. It's not going to magically turn into a different survey.

Every time we have one of these surveys show up, the threads fill with jackasses saying they don't care because it doesn't break out console gaming, which is the only thing they do care about. It's fine not to care about other sectors of gaming. It's not fine to shit up threads discussing them by pointing out that you only care about your sector of gaming, whatever that is.

Fair enough then.
 

Muzicfreq

Banned
Including mobile is stupid as that is a digital only device
EDIT:Sorry. But when showing trends I would think including digital only sources to be kinda inflating numbers in a biased way.
 

Grazzt

Member
I've gone full digital since 2015, couldn't be more happier. And thanks to home share I've also saved a lot of money.
 

levious

That throwing stick stunt of yours has boomeranged on us.
Including mobile is fucking stupid as that is a digital only device
EDIT:Sorry. But when showing trends I would think including digital only sources to be kinda inflating numbers in a biased way.


Not including them would be giving a limited picture of game revenue.
 

Durante

Member
For the people interested in drawing conclusions exclusively for consoles:
I think we all agree that they are the main remaining driver of physical sales in the US market. According to this data, physical sales are shrinking each year and rather significantly so. So there are only two possible reasons for this: (i) the console market is shrinking or (ii) the console market is in the process of catching up to others in embracing digital.
 

levious

That throwing stick stunt of yours has boomeranged on us.
Guess that also comes down to what I think it should be considered.
But then biased on my end

Free mobile games or any free 2 play game shouldn't be considered


If people spend money on them, why not? If it is free to play with no in game purchases then it wouldnt be part of these numbers.
 

Muzicfreq

Banned
For the people interested in drawing conclusions exclusively for consoles:
I think we all agree that they are the main remaining driver of physical sales in the US market. According to this data, physical sales are shrinking each year and rather significantly so. So there are only two possible reasons for this: (i) the console market is shrinking or (ii) the console market is in the process of catching up to others in embracing digital.
Would be fearful of digital only future as you can't really resell the games and are bound to accounts and download servers which if service fails and closes you're screwed
 

levious

That throwing stick stunt of yours has boomeranged on us.
Would be fearful of digital only future as you can't really resell the games and are bound to accounts and download servers which if service fails and closes you're screwed


And you're not worried about disc rot?
 

Durante

Member
Would be fearful of digital only future as you can't really resell the games and are bound to accounts and download servers which if service fails and closes you're screwed
I agree, which is why I prefer buying digital games on a platform where I retain more control than platform holders and publishers do, and have alternatives in case either of them fail.
 
While I'll always cling to physical copies of games in my favorite series (that packrat/collector mentality), I am a lot more comfortable making digital purchases than I was 5 years ago. My steam library has ballooned and I ended up using PSN and eShop a fair amount.

It'd be even better if internet services in the US weren't so shit in a lot of places, I'm betting...

And you're not worried about disc rot?

As long as discs are stored properly chances are we'll all be way dead or senile as fuck before we experience a significant amount of disc rot.
 

Fandangox

Member
For the people interested in drawing conclusions exclusively for consoles:
I think we all agree that they are the main remaining driver of physical sales in the US market. According to this data, physical sales are shrinking each year and rather significantly so. So there are only two possible reasons for this: (i) the console market is shrinking or (ii) the console market is in the process of catching up to others in embracing digital.

I am not really interested in knowing the rate for only consoles, I know the attachment for Physical is shrinking, but its hard to figure out by much exactly since digital-only platforms are also part of the industry and are counted towards the overall rate. Like I asked earlier though, I am curious as to if physical releases for PC games is even a worthy investment anymore, and would probably be a precedent to how physical will fare when platforms keep adding reasons for people to purchase digital.
 
I don't think it's shit posting to point out the asterisk in the survey that diminishes the impact of the thread title and want more detailed data. As someone who's fascinated by data and surveys I always wish for more detailed info. The thing Google did recently about Gen Z could spawn more discussion because of that.

But to this survey, what interests me the most is that graphics trumps belonging to a franchise in purchasing decisions. Would explain the success of Horizon. More original IP to come?
 

shandy706

Member
I've been replacing all my physical games and movies with digital over the last few years. My Vudu account went from like 3 movies to 100+ in just the last 6 months.

It's where everything is headed media wise.

I still like to collect things, but I quit collecting blu-rays over a year ago...and have nearly quit buying physical games unless I'm getting Collectors Editions (where I often sale the physical game).
 
For the people interested in drawing conclusions exclusively for consoles:
I think we all agree that they are the main remaining driver of physical sales in the US market. According to this data, physical sales are shrinking each year and rather significantly so. So there are only two possible reasons for this: (i) the console market is shrinking or (ii) the console market is in the process of catching up to others in embracing digital.

Hello Durante, I'm a big fan of your work.

However, hoping I can course correct you slightly. I don't think you're incorrect in what you're saying, just want to put a finer point on assumptions.

The data suggests to me that physical has been in decline because publishers have produced far fewer physical games than they used to.

The average physical sales per game produced really didn't change much at all between 2010-2015, but we went from over 700 physical games in 2010 to just over 200 in 2015.

This sharp decline in the number of games brought physical sales down.

In 2016, people started getting smarter. Smaller, previously digital only games started getting packaged releases. Rocket League (which passed 1m physical unit sold recently according to Psyonix) is a great example of this.

As release count begins to increase again, and as this holiday approaches with games like Destiny 2 etc etc I fully expect packaged sales to increase this year. Not because consumers all of a sudden found a renewed interest in packaged, but rather because more products will be available for sale.

The packaged market will always have a place, at least over the next decade or so. It's just that digital share of total spend is more pushed by publishers than it is pulled by consumers, if you know what I mean.
 

Durante

Member
Hello Durante, I'm a big fan of your work.

However, hoping I can course correct you slightly. I don't think you're incorrect in what you're saying, just want to put a finer point on assumptions.

The data suggests to me that physical has been in decline because publishers have produced far fewer physical games than they used to.

The average physical sales per game produced really didn't change much at all between 2010-2015, but we went from over 700 physical games in 2010 to just over 200 in 2015.

This sharp decline in the number of games brought physical sales down.
Well, I didn't really try to argue why it was happening, just observed that it was. Thanks for the insight into that "why", though one thing I'd add to that is that if publishers/developers release fewer phsical games there is probably some sort of business reason for that.

Also, thanks for those numbers, there being just over 200 physical releases in 2015 puts things into perspective -- in the same year around 280 were released per month on average on Steam, and now it's closer to 500.

In 2016, people started getting smarter. Smaller, previously digital only games started getting packaged releases. Rocket League (which passed 1m physical unit sold recently according to Psyonix) is a great example of this.

As release count begins to increase again, and as this holiday approaches with games like Destiny 2 etc etc I fully expect packaged sales to increase this year. Not because consumers all of a sudden found a renewed interest in packaged, but rather because more products will be available for sale.

The packaged market will always have a place, at least over the next decade or so. It's just that digital share of total spend is more pushed by publishers than it is pulled by consumers, if you know what I mean.
It will be interesting to see how that plays out. You say this development started in 2016, but according to the data in this thread physical still dropped by ~0.8 billion from 2015 to 2016, so there would need to be a much higher impact to really reverse the trend this year.
 

Floody

Member
I don't get it really. RETAIL is 90% always cheaper + resell value + rent to friends.

A big reason I'm starting to translation over to more digital than physical (I'm probably 50/50 at the moment), is 2 copies for 1 purchase, me and my brother go half on everything, so it works out cheaper and we both can play at the same time. I almost never lend or trade in games though.
 

spekkeh

Banned
According to this data, physical sales are shrinking each year and rather significantly so.

Actually these are percentages, not absolute numbers. It could be that the physical sales remain more or less the same, but the digital sales have expanded significantly (e.g. with mobile).
 

Trident

Loaded With Aspartame
Astronomical growth rate too.

digitalx8kab.png

Is this number of units sold or amount of money spent? The language seems to refer to units sold, but does that mean that ten $0.99 iaps are counted as 10x the number of units as one $10 iap?

I can't tell what conclusion we can draw from this chart at all.
 
I'll stick with my physical copies until I can't anymore.

Understand the convenience of digital, I have a good portion of digital as well. It's really nice closing a game then moving a spot or 2 to the other game without getting up and changing disc. But I like my copies.
 

Muzicfreq

Banned
I'll stick with my physical copies until I can't anymore.

Understand the convenience of digital, I have a good portion of digital as well. It's really nice closing a game then moving a spot or 2 to the other game without getting up and changing disc. But I like my copies.
I buy fps and other multiplayer focused games digital for this reason. Big story heavy games go physical
 
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