The exponential growth in the popularity of digital download services such as Steam and Direct2Drive has led many experts to speculate as to if/when digital consumption would eventually overtake, or possibly even replace outright, traditional retail sales. But thanks to a new report from the industry market research firm NPD Group, that speculation is no longer quite as farfetched as it might have seemed a few years back.
According to NPD figures for 2009, 21.3 million full PC games were purchased via digital download. What’s particularly interesting is that physical unit retail purchases came in at 23.5 million. Digital downloads accounted for 48 percent of sales in 2009, and 36 percent of dollar sales.
The NPD’s report breaks the digital download market into two categories: Casual Digital Retailers, which “often focus on smaller, easily accessible games that typically utilize try-and-buy or advertising revenue models,” and Frontline Digital Retailers, which sell titles that are also offered in retail stores. Here’s how both groups broke down in terms of unit percent share:
Top 5 Frontline Digital Retailers –2009 (based on unit % share)
- Steampowered.com
- Direct2drive.com
- Blizzard.com
- EA.com
- Worldofwarcraft.com
Top 5 Casual Digital Retailers – 2009 (based on unit % share)
- Bigfishgames.com
- Pogo.com
- Gamehouse.com
- iWin.com
- Realarcade.com
According to the report, Casual Digital Retailers took a hit in the second half of 2009, thanks in large part to the rise in popularity of gaming via social networking sites like Facebook, while Frontline retailers saw an increase in their digital download market share. NPD also cited the free mobile gaming space, specifically the 30 percent jump in iPhone and iPod Touch usage for gaming, as having contributed to the drop in Casual Retailer use as well.
Between the continued rise of digital download services, coupled with the growing popularity of console services such as Xbox Live and PlayStation Network, and even streaming services like OnLive, the industry is rapidly approaching a point where digital consumption will become the majority and physical retail purchases will be the minority. And as this latest report proves, it’s clearer than ever that this paradigm shift is no longer a matter of if, but when.
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UnJakeable
For PC gaming steam is the only way to go it makes it so much better
jewishmonkey5
Steam is going to save PC gaming!!! Thank god for Gabe Newell lol.
RPG-fan
And you thought PC gaming is dead, bitches!!!
CamperHunter1
I'm really surprised that the figures weren't closer. No surprise Steam is #1... I mean have you seen the sales on Steam? They've been offering a lot of games (new and old) at 40-90% off! I bought so many at the beginning of the year and STILL have yet to get to at least half of them.
Not to mention a lot are being made available on the Mac OS alongside their PC counterparts, this was such a welcome move (especially when I had to replace a dead motherboard earlier this month).
BigAngryRobot
As much as I'd like to slam Steam for it's occasional quirkiness, I overall enjoyed the buying experience for their versions of Batman Arkham Asylum, Dragon Age Origins, Portal, and some smaller games. Steam will be my vendor for Fallout: New Vegas later this year.
bolo73
I buy more games online like, Dragon Age, and Left for Dead 2. The last game I bought from a store/Ebay type store was Mass Effect 2. Steam makes it so easy to get the game. Plus they have sales and well a great game like Plants vs Zombies is going for 7 bucks. I know I can get the game without driving to best buy and hope they still have a copy.
Giga
Here is the real issue with this. With this most retailers are not selling games like plants vs zombies and other casual games like you are going to see being added to the sales list here. if you do apples to apples for games available im sure you would see a larger gap. This study would be like compairing psp/dsi game sales vs iphone/android game sales. In general they type of game you are getting is just different breed. While digital downloads are increasing i still see myself coosing a phisical copy i know i can come back to and not worry about a site still supporting the game or limiting the number of downloads i get. if i need to reformat my computer or upgrade one i dont want to loose it. I run 1 desktop a laptop and have ps3 360 and wii in my home. the only way i see a digital model being truly inspiring is if i buy it for one i would have digital access to the game on every system that the game is available on (netfix does it why not game companies).
Blakeeerz3
Go Ps3 Downloads !!! Ps3 is gunna become better and bettter
EKG
YEAH! Let's all buy something that we won't actually own from a company whose Agreement that we signed stated that they have absolutely no obligation to let us keep the digital game and can take it away from us at any moment! Yet we still payed the same price for something we don't even own and could be taken away at any moment as we would have payed if we just bought the real thing!!
Go Gamers!!
StrongestSaiyan
I'm not that surprised in the case if PC games. One of the big reasons for console owners to buy discs is so they can resell them if they want, but PC doesn't have that option, so PC gamers have less to lose by going digital. And I know Direct2Drive lets you download your games again, so if they get messed up somehow, you can get another.
Life79
when steam had that huge sale i went crazy, mind you im not a true pc gamer dont have the top of the line rig and i usually have to dumb down the graphics of my computer so i can play the games. but i definetly racked up on some cool games.
just cause 2, fallout 3 game of the year edition, left for dead 2, bad company 2, crysis, crysis warhead, crysis wars, bioshock 1, all for under 150 bucks pure joy thank you steam you rock. im about to download alien wars for free from all the vids on youtube it looks awsome. PSN, and Live need to get with the program steam is leaveing them in the dust when it comes to downloadable games, mind you i have both the xbox, and PS3. I plan on buying a ASUS gameing computer real soon thanks to steam DAMN YOU STEAM thank you steam lol.
crocodilius
is that all based on realm transfers and the people buying the celestial horse mount >.>
qubert
I'm not huge into reselling my games, but if you're going to offer a game as digital it better be way cheaper than an actual game, since you don't have the ability to resell it.
As far as digital music. That should be way cheaper too. Other than marketing what's the cost of digital music. No actual disc or art work to go on the disc. I feel like digital songs should be around 50 cents as nobody paying to ship or warehouse any of the cds and nobody pays artist to make art work. I've always wondered why digital music was so expensive.
bunnyglomp
So....why is blizzard AND worldofwarcraft up there?
i know its 2 different sites, but to be fair, its the same company selling the same products (you can buy wow on blizzard.com)
CodyGilleyMcnugget
I like games to stored on a shelf like a deranged squirll hoarding nuts
BONERJAM
I like hard copies of games/movies but I do download a fair amount of DLC and arcade titles.
Symicide
I am anti digital selling anything. Movies, music and Full Games. I like to own the actual product. I like a wall full of Cds and Dvds. I'm all for digital when it comes to small games like classic releases and 3rd party stuff but full games should only be download after they've spent long enough on the shelves.
AntiquesRoadwarrior
This so far has only applied to PC games. Digital Download feels safer on Steam than on a console. That probably has to do with the popularity of iTunes, but also because Microsoft and Sony are jerks when it comes to digital copies of things. I don't feel like I own my Rockband tracks because I can only play them on one console and won't have them when next gen rolls around. It's a huge pain to re-download stuff on 360, but Steam is great about that. This will never work on consoles unless they stop nickel-and-diming everyone, and since Microsoft won't even let me pay them in real money, I don't have much confidence.
macross2012
I never download games.. Would rather buy them and look like I own something for my 60.00 instead of a game I can never hold
Notafanboythatiknow
Just have in mind that a great percentage comes from downloaded PC games. I would like to see thenumbers from XBLA and PSN. I welcome the digital age, but let's hope we do not see another Playstation 3 meltdown (the internal clock deal from a few months back).
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