PlayStation: $4 billion in games revenues, 94% from digital

Sony's latest Q3 earnings show that digital absolutely dominates physical game sales.

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Like Microsoft with Game Pass, PlayStation also thrives on its bustling digital ecosystem of products, services, and engagement. Sony's PlayStation division generated $4 billion from video games in Q3'21, but the overwhelming majority of this revenue was from digital channels.

In fact, 94% of all games revenue was from digital. Sony's Games & Network Services segment made $4.012 billion from games in Q3'21. The overwhelming majority of that, $3.755 billion, was from digital software and add-ons. Physical made just $257 million in sales revenues.

While digital beats physical, add-ons completely dwarf game sales with a staggering $2 billion generated from in-game purchases, DLC, and expansions.

It's easy to see why Sony is chasing live games. Money talks, and Sony is listening. So is every other games publisher and platform-holder in the business.

Looking at these numbers, it's no wonder that Fortnite, Apex Legends, and Warzone are all billion-dollar hits. These are the types of games that earn Sony billions every quarter (Fortnite has made Sony $6 billion as of 2020), and remember that Epic Games, EA, and Activision all get to keep 70% of their game's proceeds.