- Square Enix states that over 90% of its sales are currently digital.
- This means that Square Enix’s digital sales share is just as high as Capcom and PlayStation’s.
- The data once again shows why the industry is planning to move away from physical games.
The shift away from physical games is now in full swing, with PlayStation warning its buyers about the end of disc production in 2028. Others like Take-Two and Ubisoft also appear to support this decision.
This is happening because most publishers already make most of their revenue through digital sales, and Square Enix is the latest to confirm this phenomenon.
Why it matters: Although gamers may not likely step away from physical games, the data is a clear sign that the industry has practically voted in favor of digital distribution already.
In a recent financial report, Square Enix revealed that around 90% of its current game sales now come from digital downloads. According to the Japanese publisher, this figure comes from regions like North America, Europe, Japan, and Asia.
The report states that the company sold a total of 7.38 million games in FY2027 Q1, of which 6.65 million were in the digital format. Do note that the data could be slightly skewed in digital games’ favor due to titles without a physical release. Still, this means that only 10% of the sales came from retail copies.
Capcom previously shared a similar figure, noting that digital games accounted for over 90% of its sales. Similarly, PlayStation’s recent digital sales accounted for a large share of its overall sales revenue.
In all three cases, the physical games revenue has shrunk to such a small margin that publishers are willing to forego it altogether.
With Square Enix expected to have no objections to PlayStation’s decision, the upcoming Final Fantasy 7 Revelation will likely be among the last few AAA titles from the studio to receive a physical release.
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[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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