Physical game sales have halved since 2021, down 85% from peak

[midian182]

In brief: Most people are aware of how much physical video game sales have been declining over the last few years, but the scale and speed of their fall is quite eye-opening. Since 2021, US spending on this product category has halved. And if you compare 2024 to the 2008 peak, the amount of money being spent is down a massive 85%.

The new data comes from market research giant Circana and was posted on X by Mat Piscatella. The graph shows US consumer spending on physical video games hit a high point back in 2008 when it reached just under $12 billion. There has been a constant trend downwards since then, reaching its lowest recorded point of under $2 billion in 2024.

The rate of decline in US physical video game software spending accelerated in 2024. Spending on physical video game software in the US has been cut in more than half since 2021 and is now more than 85% below its 2008 peak. We'll see if Switch 2 can help slow/reverse this trend in 2025.

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– Mat Piscatella (@matpiscatella.bsky.social) 24 January 2025 at 19:24

It's worth noting that the decline in spending between 2023 and 2024 is quite significant, but this is partly due to Nintendo Switch releases being quite light last year. The Switch is responsible for a large portion of today's physical game sales.

There is some good news for the overall games market. Total game spending, which covers physical and digital sales, hardware, and accessories, was just under $60 billion in 2024. That's significantly higher than in 2019 (~$44 billion) and better than 2022.

...and here's total US video game market spending from 2019-2024 including hardware, accessories and all content. Source: Circana Games Market Dynamics.

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– Mat Piscatella (@matpiscatella.bsky.social) 24 January 2025 at 23:01

Physical game sales have been clinging on to life for years now. The PC left them behind a long time ago, and in 2022, it was estimated that around 72% of console game sales globally were digital downloads. The changing landscape has impacted brick-and-mortar stores such as GameStop, which has been cutting jobs and closing locations. The situation is even worse in the UK, where one-time retail giant GAME struggles to stay afloat.

One just has to look at consoles to see where the industry is heading. There is a digital-only version of the PS5 and the Xbox Series S has no disc drive, nor does the new PS5 Pro, requiring users to purchase one separately if they want to use physical media.

However, physical games and the industry as a whole will receive a boost this year from two massive launches: the Nintendo Switch 2, which supports both physical and digital games, and GTA VI, which is expected to have a physical version – likely the last GTA to do so.

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Physical game sales have halved since 2021, down 85% from peak

 

[yRaz]

Wow, what a surprise. Between people having no free time going back to work and most games being overpriced political statements that ignore the fanbase, who would have thought?

Games that put fun first sell well. BGS3, SM2, black wukong, elden ring all sold really well. Why? Because they're actually fun. With inflation still on the rise causing consumers to have less time and money, developers are actually going to have start being competitive again to EARN consumers money.

 

[The Talking Tech]

It's too bad, the newer generation of people choosing the "convenience" of not owning the actual game or movie.

 

[Neatfeatguy]

I miss the physical PC game days. Renting a game on Steam/Ubisot/EA and whatever other platforms out there that don't give you actual ownership is downright a crappy aspect of PC gaming. Same goes for movies/shows.

There are two big issues with physical media for PC games. One, use of DRM. Two, use of authentication servers.

The problems with these two things only arise when: One, newer OS versions that no longer support DRM such as SecuROM or SafeDisc are used. Two, is when authentication servers are taken offline - this leaves the owner having to find ways around these setbacks; such as a crack for no DVD or altered .dll files.

So, there are drawbacks to physical media just as there are drawbacks to digital media. The only real benefit of physical media is that you can take it with you and use it where you want. Digital media you're restricted to using it with the platform you paid for it from - which limits where and how you can use the media.

I'd rather have to deal with the annoyance of finding ways around the DRM and authentication problems with older physical media, but that's just me.

 

[ScottSoapbox]

At the point games needed an internet connection and/or giant patches to run, the primary advantage of physical media (truly owning the game) went away.

That's when I realized steam saved me the hassle and I made the switch to fully digital moving forward (still have game discs from before that).

 

[stewi0001]

For PC games, I have learned to live with Steam.

As for console games, I still prefer to have physical copies. Here are my main reasons:
1. I can still play them long after the console is no longer supported.
2. I can let others play it. In my case, my kids can play on their own Nintendo Switch instead of buying the same game multiple times.

 

[Greggs]

When it comes to consoles I've never been a fan of purchasing digital games. There's no competition for the sale, giving even more control to the console maker. Since the games can't be transferred, once you're done with the game it's useless. Physical copies can be sold or given away, which I often did.

 

[ZedRM]

For PC games, I have learned to live with Steam.

Not here. A friend introduced me to GOG a few years before the pandemic and I've never looked back. If it's not on GOG, I don't play it.

 

[stewi0001]

Not here. A friend introduced me to GOG a few years before the pandemic and I've never looked back. If it's not on GOG, I don't play it.

I have nothing against GOG. I just haven't tired it.

 

[airbornex]

Switch 2 and GTA VI might give physical sales one last hurrah, but with most consoles going digital-first, this is probably the final chapter for discs. GameStop better start pivoting harder into Funko Pops and Pokémon cards.

 

[ZedRM]

Switch 2 and GTA VI might give physical sales one last hurrah, but with most consoles going digital-first, this is probably the final chapter for discs. GameStop better start pivoting harder into Funko Pops and Pokémon cards.

Personally, I'd like to ban digital distribution completely and force publishers to make games and software completely on physical format only. Or at the very least limit digital to a 2 year delay from physical release, unless it's released DRM free, then no limitations.

 

[Tran Bronstein]

The writing was on the wall for me when I purchased a physical copy of X-COM: Enemy Unknown and the inserted DVD simply installed and ran Steam while the booklet which would normally contain a game's install key on the back actually had a Steam install key. That's when I knew there was absolutely no point in buying a physical copy of a PC game ever again.

 

[Neatfeatguy]

The writing was on the wall for me when I purchased a physical copy of X-COM: Enemy Unknown and the inserted DVD simply installed and ran Steam while the booklet which would normally contain a game's install key on the back actually had a Steam install key. That's when I knew there was absolutely no point in buying a physical copy of a PC game ever again.

How about those games that had a DVD game case on the shelf, but inside of them was just a cardboard cutout of a DVD and on it was an install key for Steam?

 

[Bamda]

And people complain about the lack of drives on consoles. Well, if you don't support the stores that sell game media then drives are no longer needed.

 

[Puiu]

"But physical games could experience a boost this year" - a boost out the 10th floor window maybe, russian style.

 

[ZedRM]

"But physical games could experience a boost this year" - a boost out the 10th floor window maybe, russian style.

Did you think that was clever? Physical media is always better than digital. A comeback is very likely.

 

[HardReset]

Did you think that was clever? Physical media is always better than digital. A comeback is very likely.

Problem is that "physical game" may be nothing else than physical media containing Steam installer. Therefore buying physical gives you nothing physical actually. Gog.com gives you option to download offline installer and if games gets updated, you can download new offline installer.

 

[ZedRM]

Problem is that "physical game" may be nothing else than physical media containing Steam installer.

You are assuming we're only talking about PC. You would be wrong.

Gog.com gives you option to download offline installer and if games gets updated, you can download new offline installer.

Very true. Thus my previous comment about DRM free distribution.

 

[Puiu]

Did you think that was clever? Physical media is always better than digital. A comeback is very likely.

"Physical media is always better than digital." - for niche products and a shrinking market. physical is dying and the long term trend won't change even with a small blip where it rises.

 

[ZedRM]

"Physical media is always better than digital." - for niche products and a shrinking market. physical is dying and the long term trend won't change even with a small blip where it rises.

Trends are changing and in favor of physical. You not understanding that doesn't change anything.

 

[Puiu]

Trends are changing and in favor of physical. You not understanding that doesn't change anything.

"Trends are changing and in favor of physical." - where? any and all sales numbers point towards what I said, especially in the past 2-3 years. Do you seriously think that the Switch 2 will somehow save physical sales?

 

[ZedRM]

"Trends are changing and in favor of physical." - where?

Retail and other areas. People are tired of streaming, tired of being denied access to things they've paid for and tired of all the loser business tactics. OTA TV broadcast viewership trending back up as well for the same reasons.

 

[Puiu]

Retail and other areas. People are tired of streaming, tired of being denied access to things they've paid for and tired of all the loser business tactics. OTA TV broadcast viewership trending back up as well for the same reasons.

Sources please. The "trust me bro" argument doesn't work with me.

 

[HardReset]

You are assuming we're only talking about PC. You would be wrong.

Yeah, I have absolutely no idea about consoles. Never owned and used, well, perhaps once.

 

[ZedRM]

The "trust me bro" argument doesn't work with me.

Going to go with an "I don't care".