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Digital Games

Physical Console Games Are Quickly Becoming a Relatively Niche Market (arstechnica.com) 64

Posted by BeauHD from the physical-to-digital-transition dept.
According to a new exclusive analysis of NPD Game Pulse data conducted by Ars Technica, the number of physical console game releases continues to decline even as the number of digital console games explodes. From the report: In terms of distinct game titles released in the United States, the raw number of new games available on physical media (i.e. discs or cartridges) declined from 321 in 2018 to just 226 in 2021, a nearly 30 percent decline (games released on multiple consoles are counted as a single title in this measure). The number of digital games released each year, on the other hand, remained relatively flat from 2018 through 2020. Then, in 2021, that number exploded to nearly 2,200 digital titles, a 64 percent increase from 2020. All told, the proportion of all new console games available exclusively as digital downloads increased from 75 percent in 2018 to nearly 90 percent in 2021.

These divergent trends suggest that the decline in new physical releases is not simply an artifact of consoles like the Xbox One and PS4 nearing the end of their lifecycles. Instead, as a whole, publishers seem to see a physical release as a less relevant market for an increasing proportion of titles. But the transition away from physical console games is not distributed evenly across all publishers. The largest publishers are much more likely to go through the hassle and expense of a physical release for their marquee titles. Among major publishers, a slight majority (56.4 percent) of distinct titles released in 2021 were available as physical releases. That's still a major decline from 2018, though, when nearly 80 percent of titles from those publishers merited a physical launch. When those large publishers are filtered out, though, physical game releases quickly become a very minor part of the market. Just 8.1 percent of new games from those smaller companies were available on physical media in 2021, down in terms of both proportion and raw numbers from 2018.
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Physical Console Games Are Quickly Becoming a Relatively Niche Market More

Physical Console Games Are Quickly Becoming a Relatively Niche Market

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  • Physical media and optical drives are dead. For music, movies, TV series and games. Good. More space for actual books on the bookshelf.

    • Re: (Score:2)

      by Osgeld ( 1900440 )

      I used to think the opposite, I want to physically have the things I own as I have been burned in the past. But in reality it doesn't help to have a physical copy as layers of burdensome DRM means it can brick at any moment, and even after you install 6 DVD's worth of shit, there's another 60GB worth of updates waiting for you.

      So 2012 osgeld would say I paid for it, "its mine to enjoy whenever I want", Modern osgeld has been defeated to "well this doesnt work anymore, guess I hope it comes up for free on e

      • This is one that I'm on full part for the people ripping games apart and breaking DRM. Do I own games on steam? Yes. Does it still piss me off that I have to have an internet connection to play a single player game like Skyrim? Yep. Does it also piss me off that if for any reason the publisher would revoke the game rights from steam it would suddenly stop working on my PC? Absolutely.
        • Several games have already been revoked with no ill effects for someone who already owns a digital copy of the game. The Last Remnant is a major example of this. Valve still provides the game files to customers who have paid, even when they need to redownload them. The agreement the publisher makes with Valve means they cannot revoke Valve's right to distribute the game to already licenced customers.

          Also, contrary to common belief, the customer does own their [verbatim] copy of the game as well as the li

      • 2022 lonewolf says "DRM free or I'll only pay rental prices". Such as the price of a cinema ticket. And I have quite a backlog, so there are very few new games I feel I need to have.

        It also is worth mentioning that DRM makes software piracy more attractive. Pirated stuff usually does not have the various DRM annoyances.

      • I guess it depends on the console you are using. If the game requires an active internet connection for DRM then, yes, a digital copy offers the same playability.

        If your console or PC can play the game without all the DRM BS, then I definitely want a physical copy. I have game carts for my Nintendo GBA and DS that are just as playable today even though Nintendo doesn't support them anymore. I, or my family, can still play my Gamecube, Wii, and Switch games because they are physical items. If I buy a rep

      • Re: (Score:2)

        by fazig ( 2909523 )
        Fuck DRM.

        If you're getting something for free, try not to get tangled up in the microtransaction crap. If you're buying, buy on GOG, or look up which games can be used without DRM that are on other platforms like Steam, or Epic. You can use these lists as guides. Treat it on a "by case basis", because in some cases you can get the games to run independently from their respective launcher, in some cases multiplayer won't work:
        https://steam.fandom.com/wiki/... [fandom.com]
        https://www.pcgamingwiki.com/w... [pcgamingwiki.com]
        https://ww [pcgamingwiki.com]

    • Re: (Score:2)

      by vlad30 ( 44644 )
      Much like any Software as a Service this works well for the publishers you buy the game directly from them with no Manufacturing, Printing, Shipping etc involved. and they can easily sell in-game items, upgrades etc and subscriptions

    • Not quite. There's still a market for those whose internet isn't great. So the kids needing to spend hours downloading a game will start to get annoying for them.

      • There's a market for those that like owning instead of leasing. Digital goods can be taken away at any time - for example if there's fraud on your account, and you back charge it - they'll ban your account stealing everything legitimate you ever bought. If you have physical media they can't do that.
    • You mean You download those books to your Kindle, right?
      • I have a Kobo, yes, and have purchased ebooks. But nothing looks as good as a bookshelf full of good reads. Especially in the background of a video conference.

        • But nothing looks as good as a bookshelf full of good reads. Especially in the background of a video conference.

          There is no need to own any actual books to do that. You can greenscreen a photo of a bookshelf onto your VC background.

    • It's the one and only archival medium which provides long term archival guarantees, WORM properties and EMP resistance. This is why many small and large companies alike use it for their offline archival requirements, since online backups are not sufficient and WORM tape degrades too quickly.

      The reason why many consumers now prefer digital is because:

      * Immediate access is available, no more camping at shops or "out of stock" issues
      * The digital rip-off prices (relative to physical sales) from the mid

    • Re: (Score:2)

      by fuzzyf ( 1129635 )
      I purchase and rip movies, both DVD and BD. I really preffer having my own copy to watch when I want, where I want and on which device I want.

      Available movies on streamingservices are quite limited and adding the trend to "adapt" movies to different markets (looking at you China) and re-edit them for modern times.
      I kinda like having the original movie.
    • I guess you like paying $59 from the online store for a two year old game that now sells for $20 on retail shelves. You know what they say about a fool and his money.

    • One of the advantages of physical copies is that you can buy them from brick&mortar stores, so that you never need to agree to anything as a condition of the sale, resulting in you never being bound by a license since you literally own that authorized copy. OTOH for downloads, you always have to agree to something before they'll send you the files, because it's just so easy to make you.

      Imagine being at Walmart or something like that, buying media or a video game. The self-serve kiosk stops and prints a

    • Good. More space for actual books on the bookshelf.

      you can get books digitally, yet you want physical books on your shelf.

      ironic.

  • If you make the next consoles, discless, I'm out - I'm done.

    I have many many games I've never played which I should.
    I will not be held hostage to insane online pricing.

    I'm NOT in America so I can tell you now, ebay? Buying a bluray game (protective coating is part of bluray spec, they are very very scratch resistant) is a fantastic way to go.

    Even if I buy new, physical, the costs range from 20 to 60% cheaper than online.
    Don't for a SECOND try and tell me "it's ok, once physical is gone, they'll discount dig

  • Lol (Score:4, Insightful)

    by ArchieBunker ( 132337 ) on Thursday February 17, 2022 @10:50PM (#62278797)

    Clueless site owners using the DEC logo again. Is Digital Equipment Corp coming out with a new VAX based game console?

  • they can pull a nintendo and disable there online store, effectively neutering the console\hardware so you have to buy a new one.

  • Are there any "physical console games" anymore? (Score:3)

    by kurkosdr ( 2378710 ) on Thursday February 17, 2022 @11:25PM (#62278871)
    Sorry for asking, but my experience comes from the PC, where there are no "physical games" anymore. Even if the game comes on a disc, it's just an installer for Steam/Origin/whatever client along with an old copy of the game data (which you will have to update anyway). And if you need to "activate" it and then update it in order to play, it's not physical. Does the same thing apply to consoles?
    • Yes, and No. A physical Switch game doesn't always need to install, but it may need space for updates since updates aren't stored on the cartridge. There is unique activation to claim some reward points but that doesn't stop anyone from trading the game to someone else. Many of the PS3 and onward have required installs, but trading the disks still work. There are a lot more games like Destiny that the game parts can only be purchased for an individual account. Makes games bought for a family of kids very di

    • With consoles it is a bit better than that. The discs are impossible to replicate with a Blu-Ray burner. They have a holographic band on the inner ring past the normal readable surface that contains the game's encryption key, consoles have special drives that can seek past the normal readable section to read that key.

      Hence, the physical disc serves as a secure way of proving the user owns a license to the game. Which means you can still borrow/rent/sell game discs as a means of transferring ownership of tha

      • The last game I bought in a store was Half-Life 2. It came with a disc, but the disc was fucking worthless in that first I had to install Steam, okay there's an installer on the disc right? So the installer on the disc actually functions, but there's an internet download component. And then after Steam gets installed, it has to update itself on first run, so then it has to download all over again. And then I get the game installed from the disc, but wait, the new version of the game has to download, and oh

    • Re: (Score:2)

      by AmiMoJo ( 196126 )

      Most computers don't even come with an optical drive now. With consoles it's an option, but with PCs you usually have to buy a USB one. The USB ones don't work well with disc based copy protection, so most games have online checks instead now.

      Much of the move to online only has been driven by companies wanting better anti-piracy. These days even if you manage to pirate the game, on console it's very difficult to use the online parts without getting caught. If you get banned from PSN/XB Live/Steam any games

    • Re: (Score:1)

      by iisan7 ( 914423 )
      for PC -- I buy from gog.com when at all possible. It's definitely different from steam, origin, epic, and the rest. last I checked, you can download a drm free backup local installer for every game. haven't tried it for a while though but can verify that it worked without internet.

  • The old console games had to be complete because they couldn't be updated, now they can put out any old crap because the first thing you are going to have to do if you buy the game six months after launch is completely overwrite what is on the physical media with updates and fixes to whatever was put on the disk. The benefit of having a console has been wiped out by connecting it to the internet, And don't get me started on the cesspool known as the worldwide player base.

    Nice work if you can get consumers t

    • My consoles are not connected to the internet and I like it that way. The benefit is that I don't have to wait for updates when I buy a new game. And I don't have to pay for a subscription service so I can keep up with who banged my mom and who thinks I'm gay. I do google a bit if the unpatched version of a game isn't complete shit and I check if the install isn't too large because I hate waiting for those as well.

  • Everything is well, until the manufacturer shuts down the digital market. Sure, it cannot happen, there would be public uproar, the government regulators will protect the consumers, ... Except that it has happened numerous times, without even the tiniest push back.

    Where are our games we bought on Ouya, OnLine, Microsoft Games for Windows? Heck they won't even allow your PSP games on PS Vita, even pulling them back from the market (the pushed a compat update, which they later rescinded).

    Yep, for a throw away

  • It's a shame that kids in the future will miss out on used games. I remember how gold it was to have saved up some money (no guaranteed weekly allowance for me) and then have mom or dad bring me on down to the game shop a town over that did used Sega Genesis games (not an easily arrange event I can assure you).

    I guess online discount sales put things in the price range of kids but I still feel like there was something great about walking up to the counter with my own thoroughly earned cash in hand and prese

    • Also you owned yours games. You could resell them and buy new one with the money, sell them 20 years later, 30 years later I can still play sonic on my gamegear. In 30 years, I bet I won't be able to play my DRMed game on the original hardware also I may be dead.

  • I own a PS4 and sometimes my nephews are over and want to play on my console, but they can't play my downloaded PS-store games on their user, since they need a copy, but they aren't allowed to own an PSN-account. This is not an issue with the disc version. I think Sony, and MS if they have the same practice, need to stop this behavior if they want to get rid of physical sales. I want to own my games, and decide if my kids or siblings kids are allowed to play them (without giving me their trophies).

    • I own a PS4 and sometimes my nephews are over and want to play on my console, but they can't play my downloaded PS-store games on their user, since they need a copy, but they aren't allowed to own an PSN-account. This is not an issue with the disc version. I think Sony, and MS if they have the same practice, need to stop this behavior if they want to get rid of physical sales. I want to own my games, and decide if my kids or siblings kids are allowed to play them (without giving me their trophies).

      You're going to have to complain to the FTC. It's fraud, because they've been doing this to PC games since 1997 with ultima online. AKA they've been stealing outright since 1997, that is how we ended up with steam.

      https://www.ftc.gov/ [ftc.gov]

      That is why most Pre-2003 games are owned by you and you get the complete game files.

    • That's not right. If your PS4 is registered as your primary console, it will always play games registered to your account.

      If you go to a friend's house and log into their PS4 with your PSN account, you can download and play your PSN games while you're logged in with your account.

  • ... killed physical games by buying client-server infected fraudulently coded software in 1997 beginning with ulima online, lineag, everquest and wow.

    The game industry has been stealing networking code out of games and slapping "mmo/f2p" on the box to deny game ownership. The public is too stupid to see it is being defrauded and robbed.

  • They are the only viable purchase (Score:3)

    by HalAtWork ( 926717 ) on Friday February 18, 2022 @10:13AM (#62280075)

    If you have more than one console in your home then they are the only viable choice. When you buy a game on one console, every user can play it on that console. On another console in your home, only the user who made the purchase can play it.

    If you have multiple gamers and multiple consoles, the only way to let everyone have access to a game on each console is to buy the physical version. It works anywhere and for any user, period.

    I have made the mistake of buying a digital game, and I had to buy the same game again because it couldn't be accessed by whoever wanted to play it on each of our three consoles.

    DLC is digital only unfortunately, and this still does have to be repurchased.

    • If you have multiple gamers and multiple consoles, the only way to let everyone have access to a game on each console is to buy the physical version. It works anywhere and for any user, period.

      I must be missing something. Where I grew up, someone with multiple consoles owns multiple consoles in order to access the exclusive games of multiple console platforms. An Xbox purchase will not play on a PlayStation nor vice versa regardless of whether it is a physical copy or a paid download. Likewise across generations: Wii U games don't play on Switch nor vice versa.

  • The short time period of the analysis is problematic. Especially when that span covers such a significant global event. While the data does show a trend, one has to ask if there might be other mitigating factors. Might the drop in physical releases be due to less people doing things in person, delays in releases due to disruptions in manufacturing, etc. Might the jump in digital releases be due to people having lost jobs venturing out to make games. The analysis would be better served if it included ad

  • When I first bought my Nintendo Switch, I went all digital... that is, until my kids got Switches and we learned the hard way just how painful it is to try and share digital games with each other. We finally gave up on that route and from that point on bought all games physical, swapping cards as we play through them.

    It's a crime to pay the same for a game in digital format and not be able to sell or share it. I will no longer contribute to that on my consoles. And I'll be lobbying for laws to change this.

    • Microsoft tried to do exactly that. Trade, swap, share and sell digitally purchased games.

      The Internet pilloried them, so they shrugged their shoulders and kept on keeping on.

  • One of the overlooked reasons people buy physical is because of the state of their internet and the size of AAA games nowadays. I like buying physical versions of games because of my monthly data cap - I have a 1.2TB/mo data cap from the only provider to my address. (My provider is most likely the one you're thinking of.) A game the size of Call of Duty would eat up 1/10th of my monthly allotment, and since both me and my wife work from home and she watches a lot of streaming TV, downloading that much puts

  • They are basing this off of the charts from the past ~4 years.

    Problem with that? AAA games got pushed back because of the PANDEMIC. And inversely, indie games saw a huge rise because of the PANDEMIC.

    This doesn't mean that AAA games (those that ship physical) are dead. With people stuck at home, a lot of people picked up and finished those side projects they were always working on, and released them! But indie games don't generally have the resources for physical releases, so yes, they're going to be digital

    • But indie games don't generally have the resources for physical releases, so yes, they're going to be digital only.

      Why don't more indie developers offer a PC game as a physical copy on a USB flash drive with a custom label? Some results of a web search for branded usb flash drive offer at least as much label area as, say, a Nintendo Switch Game Card.

      • Re: (Score:2)

        by darkain ( 749283 )

        Because it all comes down to cost and time. Each drive cost money, takes time to label them, ship them, deal with shipping issues, returns, etc. It adds a lot of extra overhead to development, when indie games are only a single person or a handful of people that value their time in supporting the game itself rather than distribution of the game.

        While this is floppies instead of USB drives, copying the data and labeling are still tasks that would be needed for both: https://www.youtube.com/watch?... [youtube.com]

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