The physical video game market in the United States has been steadily declining, a trend that has become increasingly evident in recent years. New data highlights how consumer habits have shifted during the current generation of gaming.
A Long Decline in Physical Game Sales
Mat Piscatella from Circana has shared a chart that illustrates the evolution of the physical video game market since 2000. According to the chart, the market peaked in 2008 and has been declining ever since, particularly as digital distribution gained traction on consoles. By 2016, physical game sales had stabilized somewhat. However, the COVID-19 pandemic in 2020 accelerated the shift toward digital downloads. Since 2021, purchases of physical games have dropped by more than 50% and are now 85% lower than their 2008 peak. Meanwhile, spending on digital games, subscriptions, and downloadable content has grown steadily since 2019.
Reasons Behind the Shift to Digital
Several factors are driving this change in the market. One key reason is the increasing popularity of digital-only console models like the Xbox Series S and the PS5 Digital Edition, which leave players with no alternative but to purchase games digitally. Additionally, frequent sales and weekly promotions on digital storefronts make it easier and often more affordable for consumers to buy games online.
Piscatella also noted that the decline in spending on physical video games in the U.S. accelerated further in 2024. He expressed curiosity about whether the upcoming launch of the Nintendo Switch 2 in 2025 might help slow or even reverse this trend.
