The decline in physical game sales is becoming more apparent, with sales of physical copies in the US dropping by half over the past four years.
The shift towards a digital-only gaming world has been evident for some time now. Both Sony and Microsoft have released disc-drive-less versions of their consoles, such as the PS5 Slim and Xbox Series S. Even the more powerful PS5 Pro does not have a disc drive, although it can be purchased separately. Recent statistics from Circana’s Mat Piscatella highlight just how close we are to physical games becoming obsolete, unless the potential release of the Switch 2 changes the game.
The rate of decline in US physical video game software spending accelerated in 2024.
Spending on physical video game software in the US has been cut in more than half since 2021 and is now more than 85% below its 2008 peak.
We’ll see if Switch 2 can help slow/reverse this trend in 2025.[image or embed]
— Mat Piscatella (@matpiscatella.bsky.social) January 24, 2025 at 7:24 PM
Piscatella shared a graph illustrating the past 25 years of “US physical video game software consumer spending” from 2000 to 2024, showing a significant decline over the years. While it reached its peak in 2008, there has been an 85% decrease since then. Since 2021 alone, physical game spending has been slashed by more than half, signaling a concerning trend for physical game collectors. However, overall spending since 2019, including digital software, subscriptions, and microtransactions, has increased, indicating that the gaming industry is not faring worse overall, despite some setbacks like layoffs.
As noted by Piscatella, the release of the Switch 2 in 2025 could potentially make a difference, as Nintendo tends to prioritize physical copies (given its challenges with online services and the eShop). This could lead to a shift in the landscape within a year.
