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- According to Sony’s FY24 sales breakdown, add-on content was the largest revenue earner for the company.
- Physical software was the least successful sector for Sony, barely generating any revenue for its gaming business.
- PlayStation hardware was the second-largest revenue driver, driven by the continued sale of PS5 and other consoles.
Despite a loud minority fighting to keep the physical software and gaming media alive in the industry, it’s clear that digital libraries are swiftly replacing the former. While physical releases of popular titles still sell like hotcakes, it isn’t enough to make up for the losses.
Now, Sony’s new sales breakdown reveals that physical sales accounted for only a 3% revenue share, making it the company’s weakest performer. On the flip side, add-on content was the top earner, contributing a staggering 29% to revenue.
Why it matters: The FY24 sales breakdown reveals that interest and demand for physical games are declining faster than the industry anticipated. Meanwhile, digital gaming continues to grow at a steady pace.
Sony’s report for FY24 also shows that PlayStation hardware was the second-largest revenue driver for the company. Digital software accounted for 20% of the company’s revenue, compared to the disappointing sales of physical products.
Revenue growth driven by recurring and consistent revenue from software titles, add-on content, and network services alongside growing user engagement.
-Sony.
Lastly, network services (14%) and other businesses (10%) also contributed their expected shares of revenue.
It’s also worth noting that Sony expects the PS5 sales volume to decline further in the near future, as the current-gen console enters the last few years of its lifespan.
Similarly, current metrics suggest that physical software sales will also continue to decline rapidly this fiscal year. However, Sony has shown no signs of stopping physical game releases in the future despite the worrying trends.
And while Xbox once seemed to have abandoned physical media, it also apparently walked back on the decision with the announcement of physical copies for Ninja Gaiden 4 and The Outer Worlds 2.
Do you think physical software will continue to diminish in demand and popularity across the gaming industry, given the new worrying metrics? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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