Digital to make 95% of video game revenues in 2023, or $174.5 billion

Digital made up 95% of total global gaming revenues for 2023, representing $174 billion in full game purchases and in-game spending across all platforms.

1 minute & 17 seconds read time

Digital dominates 2023's annual spending in the video games market.

Digital to make 95% of video game revenues in 2023, or $174.5 billion 1's annual Year in Numbers datasheet has been published, revealing a dearth of information about the interactive entertainment's overall performance in 2023. The infograph, which includes a multitude of key metrics from the world's top analyst firms, underlines a trend that has been growing for some time: Digital gaming is taking over.

According to Newzoo, digital made up about 95% of 2023's video games revenues, or about $174.5 billion. This value includes both full game purchases made on storefronts like the PlayStation Store, Nintendo eShop, Steam, and the Xbox store, as well as in-game purchases and microtransaction spending across all platforms.

Typically, Newzoo's digital-physical split data is reserved for the firm's paid access models, so this tidbit arms us with more context.

We can actually take the figures a bit further, too. The report notes that console gaming is 83% digital and 17% physical. We use these percentages in tandem with the total console gaming market revenues ($53.2 billion) to backwards calculate how much money console gaming will make from digital vs physical sales throughout 2023.

Here's a quick breakdown:

  • Console gaming - $53.2 billion (29% of worldwide spending)
  • Physical - $9.04 billion (17% of console gaming revenue)
  • Digital - $44.16 billion (83% of console gaming revenue)

It should be noted that mobile gaming is expected to make $90.4 billion, and is all-digital. Mobile is expected to make 49% of global game revenues and would account for 51% of total digital spending throughout 2023.

Companies like Nintendo, PlayStation, and Xbox have yet to publish their holiday earnings reports so there is no current basis for comparison on a Big 3 basis.

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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