Circana Reports Slowdown in Digital Video Game Sales Growth in the US
The data provided by Mat Piscatella from Circana indicates that the growth of digital video game sales in the United States experienced a slowdown in the first eight months of 2024, reflecting a shift in market behavior.
Nintendo Switch digital sales accounted for 53% of total game sales, showing a mere one percent increase compared to the previous year. On the other hand, PlayStation 5 and Xbox Series X/S saw slightly higher increases, with 78% and 91% of sales being digital, respectively, representing a slight change from 2023.
This slowdown in digital sales is not necessarily linked to a decrease in demand, but rather to a combination of factors, including the reduction of physical options in stores and a more aggressive digital promotion strategy.
Game publishers have been introducing a more flexible pricing model in the digital market, with occasional discounts to stimulate demand, while the physical market has always followed a strategy of lowering prices over time to clear stock.
Future Growth of Digital Market Predicted by Circana
Circana predicts that the digital market will continue to grow, especially with the increasing number of disc-less consoles. The convenience and absence of physical options may further boost the adoption of digital sales.
Furthermore, the overall gaming industry in the US experienced a 2% revenue decline, attributed to market dynamics and the lack of major hardware releases this year.
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