And conditions are not improving significantly
Nintendo had a relatively uneventful year in 2024, overall. While it did release a couple of noteworthy titles such as The Legend of Zelda: Echoes of Wisdom and Paper Mario: The Thousand-Year Door, there was a clear indication that the company was preparing to shift gears ahead of the anticipated Switch 2 announcement scheduled for early 2025.
Consequently, Nintendo’s results in 2024 have been largely influenced by an astonishing 26% decline in physical game sales within the UK. This was emphasized by Chris Dring during his recent The Game Business podcast episode, where he noted that Switch physical game sales fell by 1.8 million units in 2024. In comparison, PlayStation 5 physical sales dipped by 800,000, PlayStation 4 by 600,000, and Xbox by 300,000.
Dring points out that there was not a significant shift from physical to digital formats in 2024, indicating that the slump was likely due to Nintendo’s relatively subdued year compared to previous ones.
Nevertheless, with the anticipated launch of the Switch 2 in June 2025 alongside Mario Kart World, the physical retail market is expected to face continuing difficulties. This is attributed to Nintendo’s strategy to offer digital Switch 2 games at lower prices than their physical counterparts in the UK. Dring mentions that he has not seen any other company applying this strategy on such a large scale, which will almost certainly propel more consumers towards digital purchases.
In fact, retailer GAME expressed concerns about the situation, with managing director Nick Arran remarking that lower-priced digital games present a “challenge” for the company. This is especially pertinent for GAME, which remains one of the few remaining players in the video game retail market, despite facing several controversial decisions that have hindered its standing.
With an enticing Switch 2 console bundle offering a substantial discount on Mario Kart World, the contrast between cheaper digital and physical games, along with numerous publishers likely favoring Game-Key Card launches on the Switch 2, it appears the physical retail sector is gearing up for a challenging period in the months and years ahead.
What are your thoughts, cherished reader? Will the allure of cheaper digital titles sway you from purchasing physical copies, or will you remain committed to supporting physical sales for as long as you can? We welcome your feedback.
[source thegamebusiness.com]
Nintendo Life’s dedicated horror enthusiast, when he’s not immersed in Resident Evil and Silent Hill narratives, Ollie enjoys delving into a thrilling horror novel while savoring a delightful cup of tea. He also appreciates lengthy walks and music ranging from TOOL to Chuck Berry.