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Forums - Sales Discussion - The state of digital sales on Playstation

DonFerrari said:

Hey guys for long we have discussed about digital sales and digital attach ratios...

So here we have a good interview by Sony that gives us 2 very good piece of info.

1) PSN Store sells 40% of all games on PS4

2) Almost 1/3 (26,9%) of all Horizon Zero Dawn were digital copies (915k of 3.4M).

 

Source: http://www.rollingstone.com/glixel/news/playstation-is-winning-but-what-next-w485683

PS: another 2 good points.. never doubt Nintendo and Sony will expand their IP offerings to get bigger userbase.

The difference between Horizon's 26.9% and Sony's 40% numbers is telling. Most of that 40% is made up of smaller, cheaper indie games etc. If we're talking full priced titles, that number goes way down.



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I am buying a lot more digital this gen because it's simply cheaper. I got both need for speed and metal gear 5 for 23 bucks combined. I got until dawn for 10, Wolfestien for 6, and other games for cheap as well. PSN can have huge discounts and that's really driving me to buy digital



It is also worth noting that revenue per sold unit is increased as the retailer is cut out of the equation. So 3rd party games will see sony getting the license fee.and the retailer fee. Doubling the revenue. 1rst party titles bought on the store will see the full asking price go straight into son's pockets. Not only this, but distribution and manufacturing costs are cut down. This is why platform holders love when people use their own storefront.



I have gone full digital as well. It's just so convenient to just download while sitting on your couch or doing whatever. You also have instant access to all of the games you are currently working on and you can switch games by pressing a couple of buttons. When I'm done with a game, I'm done, so I can just erase it and I don't have to store physical boxes for no purpose. I used to trade them in at Gamestop but I just can't bother with that anymore. Easy living.



Shadow1980 said:
How much of that 40% was from games that are digital-only (e.g., nearly all indie games) as well as software that was bundled with a PS4? If Horizon is any indication, only a bit over a quarter of AAA games are sold digitally. Still, 25% is more than double the 12% that it was in 2014 (and of that 12%, three-fifths was bundled software). I honestly find that more than a bit disconcerting, and I hope it's like e-books and digital AAA sales hit a ceiling soon. I do not want console gaming to be digital-only, because if it does go that route, I will cease supporting the industry. I've never downloaded an mp3 or an e-book, and I've never availed myself of the digital copies that come with most Blu-ray releases these days. I'm all about physical media.

I find it even more disconcerting that many gamers are actually encouraging and applauding the shift to digital, completely unaware of just how much of a raw deal it is, especially in the U.S. with our shitty IP laws. You think the games industry does some shitty stuff now? Just wait until they completely control all aspects of the distribution channels, kill off the second-hand market, and take full advantage of the fact that they, and not the consumer, own all those digital copies. And that's to say nothing of other inherent drawbacks to digital.

Between April 2010 and February 2017, I spent precisely zero dollars on "new" digital titles (meaning games released this gen or last gen, not re-releases of old-school games). I picked up Perfect Dark HD and Mega Man 10 when they came out, and, aside from a small handful of Virtual Console games (which was mostly me just double-dipping because I don't have a good retro gaming setup right now), I didn't buy anything else digital until Blaster Master Zero on the Switch (and that was a spur of the moment thing that I got because A) It's an 8-bit style remake of a game I already have, and B) I just wanted something to play on my Switch besides just BotW). I'm still holding out for the possibility of a physical release for Sonic Mania, and I'm hesitant to buy it right now because it's currently digital-only. I just don't like the idea of spending good money on a game that I wouldn't even own.

How would you react if I tell you that 48% of the PS4 games that were sold and that appeared in the Top 30 game sold in Japan were digital? And those weren't digital only games.

You bought 0 games digitally from April 2010 to Feb 2017? I spent around $700 (I need to check my excel). You're assuming that people care about who owns the digital games. They just want to play those games.



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Shadow1980 said:
How much of that 40% was from games that are digital-only (e.g., nearly all indie games) as well as software that was bundled with a PS4? If Horizon is any indication, only a bit over a quarter of AAA games are sold digitally. Still, 25% is more than double the 12% that it was in 2014 (and of that 12%, three-fifths was bundled software). I honestly find that more than a bit disconcerting, and I hope it's like e-books and digital AAA sales hit a ceiling soon. I do not want console gaming to be digital-only, because if it does go that route, I will cease supporting the industry. I've never downloaded an mp3 or an e-book, and I've never availed myself of the digital copies that come with most Blu-ray releases these days. I'm all about physical media.

I find it even more disconcerting that many gamers are actually encouraging and applauding the shift to digital, completely unaware of just how much of a raw deal it is, especially in the U.S. with our shitty IP laws. You think the games industry does some shitty stuff now? Just wait until they completely control all aspects of the distribution channels, kill off the second-hand market, and take full advantage of the fact that they, and not the consumer, own all those digital copies. And that's to say nothing of other inherent drawbacks to digital.

Between April 2010 and February 2017, I spent precisely zero dollars on "new" digital titles (meaning games released this gen or last gen, not re-releases of old-school games). I picked up Perfect Dark HD and Mega Man 10 when they came out, and, aside from a small handful of Virtual Console games (which was mostly me just double-dipping because I don't have a good retro gaming setup right now), I didn't buy anything else digital until Blaster Master Zero on the Switch (and that was a spur of the moment thing that I got because A) It's an 8-bit style remake of a game I already have, and B) I just wanted something to play on my Switch besides just BotW). I'm still holding out for the possibility of a physical release for Sonic Mania, and I'm hesitant to buy it right now because it's currently digital-only. I just don't like the idea of spending good money on a game that I wouldn't even own.

I would say something like 20% or less of the revenues is digital-only games. Even more because from that 40% a big chunck is on DLC and other type of sales for retail games.

Yes I also find funny that people are so eager to abdicate from any sense of ownership. But nowadays most sales are done for "comfort" and "easyness" of lazy people, so as you saw in mere 3 years the digital ratio for retail doubled. So maybe in no more than 2 gens the physical editions will be the odd man out.

I have bought a lot of digital retail, but because both things happened, I didn't care enough on the franchise to own the disc and the price was a lot lower than the hardcopy.

 

AlfredoTurkey said:
DonFerrari said:

Hey guys for long we have discussed about digital sales and digital attach ratios...

So here we have a good interview by Sony that gives us 2 very good piece of info.

1) PSN Store sells 40% of all games on PS4

2) Almost 1/3 (26,9%) of all Horizon Zero Dawn were digital copies (915k of 3.4M).

 

Source: http://www.rollingstone.com/glixel/news/playstation-is-winning-but-what-next-w485683

PS: another 2 good points.. never doubt Nintendo and Sony will expand their IP offerings to get bigger userbase.

The difference between Horizon's 26.9% and Sony's 40% numbers is telling. Most of that 40% is made up of smaller, cheaper indie games etc. If we're talking full priced titles, that number goes way down.

Well if we look at most retail games getting 1/4 of its sale from digital, that leaves 15% of the revenue for DLC and smaller titles.

Dante9 said:
I have gone full digital as well. It's just so convenient to just download while sitting on your couch or doing whatever. You also have instant access to all of the games you are currently working on and you can switch games by pressing a couple of buttons. When I'm done with a game, I'm done, so I can just erase it and I don't have to store physical boxes for no purpose. I used to trade them in at Gamestop but I just can't bother with that anymore. Easy living.

I don't think that is that much convenient when you are going to play in a different console, or just bought and have to wait 2h to download or redownload the game.

Lawlight said:
Shadow1980 said:
How much of that 40% was from games that are digital-only (e.g., nearly all indie games) as well as software that was bundled with a PS4? If Horizon is any indication, only a bit over a quarter of AAA games are sold digitally. Still, 25% is more than double the 12% that it was in 2014 (and of that 12%, three-fifths was bundled software). I honestly find that more than a bit disconcerting, and I hope it's like e-books and digital AAA sales hit a ceiling soon. I do not want console gaming to be digital-only, because if it does go that route, I will cease supporting the industry. I've never downloaded an mp3 or an e-book, and I've never availed myself of the digital copies that come with most Blu-ray releases these days. I'm all about physical media.

I find it even more disconcerting that many gamers are actually encouraging and applauding the shift to digital, completely unaware of just how much of a raw deal it is, especially in the U.S. with our shitty IP laws. You think the games industry does some shitty stuff now? Just wait until they completely control all aspects of the distribution channels, kill off the second-hand market, and take full advantage of the fact that they, and not the consumer, own all those digital copies. And that's to say nothing of other inherent drawbacks to digital.

Between April 2010 and February 2017, I spent precisely zero dollars on "new" digital titles (meaning games released this gen or last gen, not re-releases of old-school games). I picked up Perfect Dark HD and Mega Man 10 when they came out, and, aside from a small handful of Virtual Console games (which was mostly me just double-dipping because I don't have a good retro gaming setup right now), I didn't buy anything else digital until Blaster Master Zero on the Switch (and that was a spur of the moment thing that I got because A) It's an 8-bit style remake of a game I already have, and B) I just wanted something to play on my Switch besides just BotW). I'm still holding out for the possibility of a physical release for Sonic Mania, and I'm hesitant to buy it right now because it's currently digital-only. I just don't like the idea of spending good money on a game that I wouldn't even own.

How would you react if I tell you that 48% of the PS4 games that were sold and that appeared in the Top 30 game sold in Japan were digital? And those weren't digital only games.

You bought 0 games digitally from April 2010 to Feb 2017? I spent around $700 (I need to check my excel). You're assuming that people care about who owns the digital games. They just want to play those games.

They just care about it now, until they get those situations where they can't redownload their game because some license expired or a server was closed.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

DonFerrari said:

Hey guys for long we have discussed about digital sales and digital attach ratios...

So here we have a good interview by Sony that gives us 2 very good piece of info.

1) PSN Store sells 40% of all games on PS4

2) Almost 1/3 (26,9%) of all Horizon Zero Dawn were digital copies (915k of 3.4M).

 

Source: http://www.rollingstone.com/glixel/news/playstation-is-winning-but-what-next-w485683

PS: another 2 good points.. never doubt Nintendo and Sony will expand their IP offerings to get bigger userbase.

I'm already out of space on my PS4 Pro, so all digital would be terrible.

Plus with Madden, SWBF2, CODWWII, I can sell all my old copies to someone, because they are on disk.

Recently I can't even buy a physical version of Hellblade, or UC4 LL so I had to get them digitally, and it was a pain to delete stuff.



Ucouldntbemorewrong said:
DonFerrari said:

Hey guys for long we have discussed about digital sales and digital attach ratios...

So here we have a good interview by Sony that gives us 2 very good piece of info.

1) PSN Store sells 40% of all games on PS4

2) Almost 1/3 (26,9%) of all Horizon Zero Dawn were digital copies (915k of 3.4M).

 

Source: http://www.rollingstone.com/glixel/news/playstation-is-winning-but-what-next-w485683

PS: another 2 good points.. never doubt Nintendo and Sony will expand their IP offerings to get bigger userbase.

I'm already out of space on my PS4 Pro, so all digital would be terrible.

Plus with Madden, SWBF2, CODWWII, I can sell all my old copies to someone, because they are on disk.

Recently I can't even buy a physical version of Hellblade, or UC4 LL so I had to get them digitally, and it was a pain to delete stuff.

I bought a 3Tb external HDD for my playstations, so that I could also just transfer the gaming session from one to another. but even so it isn't all roses since the saves can't be put on the HDD so I can't keep the session unless I manually upload and download saves from one to the other.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Shadow1980 said:


I find it even more disconcerting that many gamers are actually encouraging and applauding the shift to digital, completely unaware of just how much of a raw deal it is, especially in the U.S. with our shitty IP laws. You think the games industry does some shitty stuff now? Just wait until they completely control all aspects of the distribution channels, kill off the second-hand market, and take full advantage of the fact that they, and not the consumer, own all those digital copies. And that's to say nothing of other inherent drawbacks to digital.


But if they want to do shitty stuff they can do it already and some did with closing down servers/stop updating game because of a low userbase and if you own digital or physical it hurts both ways. Honestly if the second hand market goes away it is not because of consumers but because of companies like Gamestop. 

Take an example,  Lego harry potter PS4 is pre owned 27 bucks while digitally with ps plus it is 17 bucks....Buying the pre owned version only loses you more more money and the devs/publishers technically nothing. The only one who wins is Gamestop.






DonFerrari said:
Ka-pi96 said:

But... if they're selling it on PSN then Sony is the retailer and they definitely still take their retailer cut.

We just don't know how much Sony take on it. I mean, how much above the common royalty cut. But all in all considering less cost to print copies, ship, receive only for the sold ones, cuts from everyone and etc, the dev probably take a little more on digital.

Well I think it was confirmed that 3rd party devs get 70% of the sales just like on most app stores. SO still better than the 10-40% they make at retail, depending on the price.



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