As the gaming industry shifts towards digital game sales, Japanese publisher Capcom has reassured fans that they have no plans to abandon physical disc-based games anytime soon. While digital sales are undeniably taking over the gaming landscape, physical media remains a crucial aspect of the $180 billion interactive entertainment industry. Millions of consumers still purchase discs annually at major retailers like Walmart, Target, and Amazon. Even prominent publishers like Capcom, Electronic Arts, and Sony Interactive Entertainment remain committed to producing disc-based games.
During a recent Q&A session with shareholders, Capcom was questioned about their strategy for addressing the growing demand for digital content. Their response was clear and concise: Capcom will continue to deliver physical games as long as there is a market demand. The company’s financial statements reveal that digital sales are indeed a substantial part of their revenue stream. In fact, during FY23, the fiscal year ending on March 31, 2024, a remarkable 93% of Capcom’s game sales originated from digital channels. This marks a significant increase from two fiscal years prior, when digital sales accounted for 75% of their revenue in FY21. The trend is undeniable: Digital sales are significantly outpacing physical sales for Capcom, directly contributing to their impressive year-over-year operating profit growth.
