Digital made up 77% of Capcom's Q1 gaming revenues, and 86% of total game sales

Like most of the top video game publishers and platform-holders, Capcom also made most of its gaming revenues from digital.

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Digital has been slowly taking over the video games market for many years now. The Gen8 console cycle gave way to a paradigm shift towards live games and subscription services, and now both PlayStation and Xbox make most of their revenues from in-game purchases and digital sales.

Capcom is one of the publishers that has contributed strongly towards this trend, and digital is a big reason why the company is able to deliver strong consistent operating income growth across its games unit. According to Capcom's latest Q1 2023 financial report, the Japanese games-maker once again made most of its game unit sales and total video games revenues from digital delivery.

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Read Also: Capcom delivers record Q1 with net sales, operating income, and profits reaching new highs

In the period from April 1 - June 30, Capcom sold a record-breaking 13.5 million games, more titles than the company has sold in any quarter for the last 7 years.

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Out of these 13.5 million game sales, 86% of them, or 11.6 million copies, were sold digitally. That leaves physical game sales at 1.9 million and comprising just 14% of total unit sales.

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In terms of revenues, digital once again took the lead. On a yen to USD converted basis using quarter-end foreign exchange rates, Capcom generated $285 million from digital game sales and content, accounting for 77% of total Digital Contents game segment revenues.

Physical, on the other hand, made up 23% of total revenues with $89 million.

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Capcom notes that its strongest games sold throughout FY23 include new titles like Street Fighter 6 (1.97 million units sold), and Resident Evil 4 (1.17 million units sold in FY23 so far, pushing total lifetime sales to 4.95 million), which technically released at the tail-end of FY22 but will nonetheless have a strong impact on FY23 sales due to Capcom's excellent catalog performance.

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