90 percent of video game sales still physical media

According to Games Acquisition Monitor, a quarterly report from leading market research company The NPD Group, 90 percent of all paid console video game acquisitions in the third quarter (Q3) of 2009 (July-September) were in the physical format, while 79 percent of games acquired for all other platforms which include portable, PC/MAC, mobile and smartphones, were in the physical format*.

Dual format (digital and physical) video game purchasers distinguish themselves from purely digital purchasers in that they are notably younger, since 70 percent of dual format buyers are under the age of 35 as compared to 46 percent for digital only purchasers. Dual format purchasers represent just 19 percent of all buyers but provide 40 percent of dollar volume.

Piracy, defined for this report as downloading files through Peer-to-Peer (P2P) networks, is small relative to the music industry. However, 4 percent of gamers, representing just over 6 million consumers, indicated that they downloaded files from P2P networks, with 72 percent of pirated downloads occurring for PC/Mac.

Throughout Q3’09, PC/Mac and console gaming were the most popular platforms among gamers, followed by portable systems and cell phones. While smartphones ranked among the lowest in terms of gaming, cross-usage patterns reveal that users of XBox 360, PSP and DSi gaming devices showed notably higher cross-usage of the iPhone and iPod Touch for gaming as compared to users of other platforms

"While physical retail product remains the driving force behind industry sales, the role of digital distribution in the games ecosystem continues to climb," said Anita Frazier, industry analyst, The NPD Group. "Publishers and retailers must keep an eye on the current state of the marketplace and must map ahead for future strategies."