Is Xbox going digital? 90% of game sales last year were digital downloads

Last week, we reported that Xbox fired 1900 employees, and it turns out that most of them were associated with physical games or games released on disc. Recent figures give us a clear picture of what led to the decision.

In 2023, almost 90% of Microsoft’s sales were from digital titles. This marks a clear shift in user preferences, and Microsoft is adjusting to market demands.

It can be attributed to the fact that more users now have access to a stable Internet connection and prefer downloading games rather than going to a shop and purchasing a disc. Even if bought online, the delivery time acts as a deterrent.

The Covid pandemic also has played a significant role in this change in user behaviour.

A similar trend is witnessed across regions and markets. As per reports, in 2022, 89.5% of the game sales in the UK were digital copies, which includes 30% of the mobile app sales.

If we were to look at PlayStation, digital purchases were 5x the physical ones. For Nintendo, the percentage is somewhat lower, but digital sales still outperform physical ones by almost 300%.

Don Mattrick, almost a decade ago, in 2013, had envisaged an all-digital future for Xbox where you would purchase game licenses instead of the game itself. While the idea was ridiculed back then, we may be headed in the same direction if reports are to be believed.

Xbox statistics also tell us a lot about this!

What’s your take on the whole digital vs physical ownership debate? Do let us know in the comments section.