Despite steady demand from traditional gamers and collectors, the physical video game sales have dropped by almost 25% in the past three years, reaching around $11 billion in 2024. Unfortunately, the outlook remains bleak, with gamers spending less on physical titles than ever before.
According to data from Betideas.com, gamers worldwide now spend less than $10 on average per year on physical video games, and this trend is expected to continue through the end of the decade.
Market Revenue Set to Stay Flat for Years
Over the past decade, the gaming industry has seen a major shift, with most players turning to digital downloads for their speed, convenience, and easy access. Gaming companies also began focusing on online sales because they’re cheaper and more profitable. At the same time, cloud gaming and services like Xbox Game Pass and PlayStation Plus became hugely popular, so even fewer people needed physical copies. All of this together pushed physical video games, once the heart of gaming, into the background.
According to the Statista Market Forecast survey, gamers worldwide spent $14.5 billion on physical copies five years ago. Since then, their annual spending has plunged by over $4 billion or nearly 25%, falling to $11.3 billion in 2024. Statista expects market revenue to remain flat over the next four years, with gamers spending around $11 billion on physical copies. The slowdown becomes even more evident when looking at revenue per user. According to Statista estimates, the average amount spent per user on physical video games will remain below $10 per year through 2029.
And while physical game sales remain flat, other segments of the gaming industry continue to grow, though at a slower pace than in previous years. In comparison, mobile game revenue is expected to rise from $126 billion to $156 billion over the next four years, though the annual growth rate will slow from 6.5% to 5%. Cloud gaming revenue will more than double, reaching $25 billion by 2029, with growth slowing to 17% that year, down from 51% in 2025. Meanwhile, online games are projected to see steady growth, hitting $35 billion by 2029 with an average annual growth rate of 5%.
Physical Video Games to Make Only 1.6% of Market Revenue by 2029
The projected slowdown will majorly impact the market share of physical video games. Once a core of an authentic gaming experience, physical titles have become a minor revenue stream, making up only 2% of the total gaming industry value in 2025. With growth stalling and sales frozen, physical video games are expected to make up just 1.6% of total gaming revenue by 2029.