According to Japanese video game magazine Famitsu, Japanese software and hardware sales are at an unexpected low. Sales have been dropping steadily since 2007, where Japan sold over 688 billion yen’s worth of video game hardware and software. However, in 2014 they sold only 369 billion yen’s worth of product in retail stores. We haven’t see numbers that low since 1990.
If you were to believe these numbers and these numbers only, you would probably think that video games are on the way out. However, it is important to note that these numbers do not factor in sales from digital distribution. Several sources have noted that digital distribution sales are on the rise. Retail monitor NPD has claimed that digital sales are now overtaking physical sales. It has been estimated that nearly half of all sales come from digital distribution platforms. If we double the physical sales numbers in Japan, that paints a much brighter picture: nearly 500 to 600 billion yen in sales.
So now the question is, are digital sales soon going to be the primary method for purchasing games, at least in Japan? Well, when you look at the best-selling hardware in Japan, the 3DS and PS Vita currently are on top over every single console available for purchase. The mobility of these handheld platforms is desirable in Japan, where public transport is the most common form of travel. Of course, this would also mean that digital distribution would also be desirable. It allows you to take your entire portable library of games around with you, without carrying around a bag of tiny little plastic cartridges.
It’s also worth noting that these numbers do not factor in PC sales either, and the PC market has been growing quite a bit in the past few years. An essentially region-free platform to begin with, PC games have already become primarily digitally distributed over platforms like Steam, Origin, and Good Old Games. Japan even has its own Japanese-exclusive distribution platforms. Whatever pieces of software aren’t offered for sale in a particular region are pretty easily hacked and distributed as well. Although this doesn’t really aid sales, it can contribute to a title’s popularity and eventually net it an official release.
Digital distribution appeals to gamers’ desire for convenience. Digitally distributed games can be purchased instantly, and you can play them on the release date without ever having to leave the comfort of your own home. In a way, it appeals to the same sensibility that causes people to pirate games–the ability to have the game you want, right here, right now, without fiddling with discs.
Many futurists have suggested that consoles are on the way out, stating that the next Xbox and PlayStation will just be digital distribution platforms that you can purchase alongside a simple game box style PC and controller. Many still don’t think this is the case, but with the prevalence of Steam and the noticeable drop in hard copy sales, it’s pretty hard to deny that digital distribution is becoming more and more popular among gamers. What do you think? Is digital distribution the wave of the future, or is Japan just selling fewer games? Let us know in the comments.