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NPD: Physical Media Still Dominant in Game Sales

Posted January 13, 2010 by David Radd

While digital game sales are a topic of intense conversation in the gaming industry, a quarterly report by the NPD says that they're still a small part of the overall market. Games Acquisition Monitor states that 90 percent of all console game "acquisitions" in the quarter ending September 2009 were in a physical format, while 79 percent of games on other platforms - mobile, portable and PC - were physical too. It's important to note, that these "acquisitions" not only include new and used game sales and physical add-ons (including  song packs), but also game rentals.

"While physical retail product remains the driving force behind industry sales, the role of digital distribution in the games ecosystem continues to climb," said Anita Frazier, industry analyst at The NPD Group. "Publishers and retailers must keep an eye on the current state of the marketplace and must map ahead for future strategies."

Those who purchased both digital and physical games tended to be younger; 70 percent of dual format buyers are under the age of 35 as compared to 46 percent for digital only purchasers. These dual format purchasers represent just 19 percent of all buyers but make up 40 percent of dollar volume.

Digital game piracy is small compared to the music industry, but four percent of gamers (roughly six million people) use P2P networks to pirate, with 72 percent of pirated downloads occurring on PC formats.

David Radd has worked as a gaming journalist since 2004 at sites such as GamerFeed, Gigex and GameDaily Biz.

2 Comments

Thomas
January 14, 2010

Reading this makes me think that the guy at 1C who said "Retail is forcing PC Games Out" is on crack.

elizadavid
March 15, 2010

I want to know the separate sale numbers of the PSP and PSP Go. Lumping them together as a platform total is confusing when the industry is clearly watching the PSP Go closely to see if it is a bellwether for digital distribution.

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