Capcom won't eliminate physical games despite digital making up 93% of all game sales

As the games industry moves towards digital-based game sales, Japanese publisher Capcom has no plans to discontinue physical disc-based games any time soon.

4

While digital sales are taking over gaming, physical media remains an important part of the $180 billion interactive entertainment industry. Consumers still buy millions of discs a year at retailers like Walmart, Target, and Amazon, and publishers like Capcom, Electronic Arts, and even Sony Interactive Entertainment are still keen on producing disc-based games.

In a recent Q&A with shareholders, Japanese publisher Capcom was asked how the company plans to deal with the increasing digital-based needs of consumers. Capcom's answer was pretty clear-cut: The firm will continue delivering physical games as long as there is demand.

Here's the exchange during the shareholder meeting:

Q The ratio of physical game sales is decreasing as end-user needs for digital is increasing. What is your outlook on physical games and the company's policy regarding this?

A Given that a significant number of end users demand physical games we currently do not expect to eliminate physical products.

We can actually take things a bit further thanks to Capcom's financials.

4

Digital makes up a significant portion of Capcom's game sales. In fact, during FY23, the recent fiscal year that ended on March 31, 2024, some 93% of Capcom's game sales were from digital channels. This is a stark contrast to two fiscal years ago; in FY21, Capcom made 75% of its game sales from digital.

4

The trend is pretty clear for Capcom: Digital is outperforming physical by a longshot, and this is ultimately fueling Capcom's incredible year-over-year operating profit growth.