Analyst: A Third of Games Sales for Consoles Will Be Digital

Research firm IHS forecasts is suggesting that 34 percent of the money consumers spend on software for Xbox One and PlayStation 4 will be done in the digital space by 2017.

"A key driver for this digital transition will be publisher ambition to release most games digitally at the same time as boxed versions at retail outlets," said the report prepared by Piers Harding-Rolls, head of games.

"Those titles that have already experimented with digital 'day and date' releases alongside boxed versions have enjoyed a small but growing digital share of total sales volume, but IHS predicts that by 2017 new releases could be enjoying up to 18 per cent digital sales depending on geography."

In 2008, only 7 percent of the money spent on games for Sony and Microsoft's respective consoles was on digital products. So what has changed since then? Both systems have offered better discoverability, a wide variety of content, new approaches to monetization on consoles, new distribution channels and competitive pricing for digital games. These key points are what will continue to accelerate digital goods over boxed products.

New consoles coming out at the end of this week and next week have refined all of the aforementioned aspects and have put in place functionality to make it easier to offer releases on the same day as they are available at retail. IHS's predictions are not surprising, given that the industry and consumers have been rapidly moving away from traditional retail in favor of online sales…

Source: GII


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