The State of Digitalization in the Video Game Market for 2024

The video game industry has been predominantly digital for some time, with physical games representing a small portion of the market. However, when it comes to new game sales, physical distribution remains an essential channel. In 2023, 72.4 million video games were sold through physical retailers in Europe, with 42% of new games being sold via physical stores. But what about 2024? The data from GSD, which tracks physical and digital sales, shows a significant shift towards digital, with 75% of new games being sold as digital downloads in the first 40 weeks of the year. This represents a 12 percentage point increase from the same period last year. The shift towards digital is particularly notable on PlayStation, where new physical game sales have dropped to under 30% for the first time. Xbox has also seen an increase in digital sales, with only 19% of new games being sold via retail stores. In contrast, the Nintendo Switch remains a predominantly physical platform, with 65% of new third-party games being sold physically. The shift towards digital can be attributed to various factors, including the release schedule and the type of games being released. For instance, multiplayer shooters tend to perform better digitally, while single-player narrative games often do better physically. The data also shows that annual releases, such as sports games, have seen an increase in digital sales. Ultimately, the decision to release a game physically or digitally depends on various factors, including the game, platform, audience, and territory. With 32 million physical games sold across Europe in the first nine months of the year, the boxed games market remains a viable opportunity for game developers and publishers.