For console games, downloads are approaching a tipping point

On PC, games distributed on discs in physical boxes have proven to be a practical market rounding error. for many years now. Destiny 2The sales breakdown suggests that the console gaming market may finally (and inexorably) be heading towards this point.

IN earnings call this weekActivision reported that more than 50 percent Destiny 2Sales on consoles were via download rather than retail disc. This is a “new high point” for the company and is much higher than “20-25 percent” Call of DutyAccording to Activision, console sales are typically represented by digital copies (although Call of Duty World War II seeing “higher levels of digital pre-orders… than any previous Call of Duty title.”) Even for online games such as Overwatch and original FateOnly 30 to 40 percent of console sales typically come from downloads, the company said.

More importantly, Activision doesn't see Destiny 2Most digital consoles are an exception. As Activision CFO Spencer Neumann said in the earnings call, “Historically, we've seen the digital mix grow about five points per year.” WITH Destiny 2Console digital majority, Neumann says, “we think we're seeing some acceleration of this digital transition.”

It's this acceleration that could quickly push the console market toward an inflection point, and Activision isn't alone in noting the speed of the digital shift in the console market. EA announced this earlier this year. expects 40 percent of console game sales to come from downloads in 2017. It's a big leap from 30 percent of sales in 2016and a big step towards EA a long-stated expectation that it “will be a 100 percent digital company, period. It will be there someday. It's inevitable.”

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