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NPD Report: Digital Sales surpass Physical


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#1 Zinix

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Posted 23 November 2013 - 02:08 PM

 

Research firm NPD Group has released a new report called Q3 2013 Games Market Dynamics: U.S., which details the spending habits of video game consumers in the United States during the third quarter of this year. The report notes that $3.45 billion was spent on games in Q3 2013. Around $1.30 billion of that total was spent on physical game software, while $1.75 billion was spent on digital content (digital purchases, DLC, subscriptions, social, and mobile games), $436 million went towards used games and game rentals.

The third quarter also saw a 17 percent increase in content spending, due to a 20 percent increase in new physical game purchases and a 35 percent increase in full digital and DLC purchases. These two categories of spending accounted for $1.98 billion of the quarter's total, up from $1.59 billion year-over-year. Social network gaming was the sole category to see a decline during the quarter.

"Trends during the third quarter were the best that we have observed since the second quarter of 2011, driven by growth across both the physical and digital sides of the video game industry," said Liam Callahan, industry analyst. "The launch of Grand Theft Auto V helped propel the new physical sales by twenty percent and continued growth of console digital full games as well as downloadable add-on content is an indication of the renewed health of the industry. We expect that the launches of Microsoft's Xbox One and the Sony PS4 will continue to fuel consumer excitement and spending for games heading into the holiday season."

 

http://www.gamepolit...q3#.UpDcTOLRpTE

 


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#2 Blake

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Posted 23 November 2013 - 02:33 PM

Augh, I hope this doesn't eventually lead to the downfall of physical games...

 

(although inevitable)


Edited by Blake, 23 November 2013 - 02:33 PM.


#3 Hank Hill

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Posted 23 November 2013 - 03:46 PM

It's not hard for digital sales to surpass physical sales when every $60 game gets another $30-$100 worth of DLC stapled onto every yearly release.


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#4 Abcdude

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Posted 23 November 2013 - 05:26 PM

The fall of gamestop begins now.


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#5 Mewbot

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Posted 23 November 2013 - 08:08 PM

I'm cool with Didital taking over physical, but I hope they make the games cheaper as a result. Can't charge the same amount as before if there's no physical box and disc.


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#6 3Dude

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Posted 23 November 2013 - 08:11 PM

Wondering how much the availablity of Digital download Nintendo games to insecure manchildren who are afraid to be seen purchasing nintendogames in public affected this....


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#7 itsdavebaby

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Posted 23 November 2013 - 09:25 PM

It's not hard for digital sales to surpass physical sales when every $60 game gets another $30-$100 worth of DLC stapled onto every yearly release.

That's only reason that there's such a significant margin.



#8 xile6

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Posted 24 November 2013 - 12:48 AM

I like hard copies. Just feel better since I can take them where I please and don't gotta download them.

 

Hell do you want to download a 30gb game on a 6k connection?

 

Either way I think the digital has higher readings because of dlc and old school games that are digital only.


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#9 Alex Atkin UK

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Posted 24 November 2013 - 10:10 AM

I wonder how much of this is down to the fact digital is usually more expensive?  Plus as others have said, does this include DLC?


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#10 grahamf

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Posted 24 November 2013 - 10:17 AM

I've found that quite often the physical disk is cheaper. Sometimes because of discounts (I got steel diver for $1 from EB games - new) others second hand (I got Mario Kart 7 from $15 from a pawn shop that forgot to mark up first-party games).

 

Plus now that I started purchasing the disk versions, It's easier to continue to do so then have a mix of eShop games and disk games.

 

If Nintendo had a trade-in program so I can exchange my dsks for eShop activation keys for an acceptable fee, I'd probably do it.


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#11 Happy Monk

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Posted 24 November 2013 - 02:18 PM

Digital is easier as it requires little to no effort on the consumer's part. But physical is the way to go by a long shot, for any kind of media.

 

But I know why people buy less physical copies - the death of the instruction manual. That was the only thing that kept people buying games in a box obviously.


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#12 Hank Hill

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Posted 01 December 2013 - 09:12 AM

I wonder how much of this is down to the fact digital is usually more expensive?  Plus as others have said, does this include DLC?

 

This includes DLC, Subscriptions to games/game services, digital game purchases, and social games. So it's a bit one-sided of a report, IMO.


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#13 Lupaie

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Posted 01 December 2013 - 09:25 AM

I buy most of my games digital now. Have loads of old games in some boxes somewhere.

For me, the main reason to buy digital is:
No scratches on the discs. My kids an I play all kind of games...a lot. So by just eliminating the disc swapping proces not only buys me time, it's also a lot safer.

Back in the day, and on 3ds, the cartridges are a lot safer.

Also, when I was alone, I could play a game for weeks without swopping it out. But now I just had to do it many times. Can't count the time when I finally put the kids to bed, to fall onto the couch not having much energy left to reach out to the gamepad, switch it on and.... Have to stand up again to swop Barbie Landers Swapschool ;)

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#14 Sargiel

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Posted 01 December 2013 - 03:16 PM

Physical still has a definite edge for me. Not only do I get around the problem of my slow internet connection (the patches are bad enough without facing the nightmare of a 30GB game download :D ) but I retain the ability to resell in the future. 

 

Also when it comes to console gaming it feels like you're more likely to get a bargain buying the boxed game versus the download from a digital store. 

 

I'm not overly surprised by the report (though it would be interesting to see where their data came from, how they analysed it etc.) due to the DLC factor as already mentioned. One could assume that even if a consumer bought the physical version if they buy DLC they're adding a digital sale. 






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