The digital revolution is progressing, which is making discs less important. But what does Capcom think about physical and digital releases?
The share of games sold digitally has been increasing for years. Analysis of Piers Harding rolls recently concluded that premium console games sold as downloads overtook disc sales during 2019. By 2026, the share of physical media could halve again.
Ultimately, the question is how publishers will react to the new market situation, especially since the revenue generated from subscriptions and extensions has also overtaken that of physical publications.
Capcom has since responded and given an outlook on what players can expect in terms of physical media. The advantage of digital releases was also highlighted.
In a meeting with shareholders, Capcom was asked about the decline in sales of games on physical media. How does the publisher view the future of physical game releases and what is the company's policy on this?
First of all, Capcom emphasized in a short response that a complete cessation of physical releases is not to be feared at the moment.
“Given that a significant number of end users demand physical games, we do not currently anticipate discontinuing physical products,” the publisher said in response.
As long as players pick up disks and the like, Capcom doesn't seem to want to give up this mainstay. But how do readers of PLAY3.DE buy their games?
Digital sales have decisive advantages for the publisher
Another question related to Capcom's continuously increasing profits of ten percent per year. The topic in this context was the “volatile industry”, in which blockbuster new releases usually lead to a large increase in profits in one year, before a decline in profits occurs again the following year.
So how did Capcom manage to break out of this situation? Physical media also plays a role here, as Capcom emphasizes in its response. Because they represent an obstacle to long-term and consistent sales, at least as the sole form of distribution.
Below is a list of the most important findings from the statement:
- In the past, games were primarily sold in retail stores. Games were displayed prominently on the shelf for about six months.
- Digital transformation has enabled publishers to sell their games directly for years, allowing for flexible pricing strategies and discounts for older games.
- Thanks to these opportunities, sales of older titles such as “Resident Evil 7” and “Monster Hunter: World” are increasing.
- In addition, Capcom thoroughly manages the mid-term development plan by maintaining a 5-year development map to help effectively time the release of new titles.
- This results in lower volatility while increasing digital sales and promoting long-term game sales.
Further questions and answers from the meeting with shareholders can be found in the PDF document published here summarized.
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How high the share of digital sales actually is was recently shown by a Overview based on the UK marketIt lists big blockbusters like “God of War Ragnarök” and “Modern Warfare 3”. The results were quite varied.
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