DFC: Digital console revenue to pass packaged sales in 2019

DFC Intelligence released its worldwide video game console system forecast, which predicts digital gaming revenue to surpass physical package sales in 2019.

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DFC Intelligence, a research and analytics company established in 1994, has released its five-year look at the future of the video game console market. One of the major takeaways is that digital distribution of video games is predicted to overtake physical package retail sales in 2019.

The movement to digital sales on home gaming consoles has been pretty significant over the last few years. DFC's report states that packaged and digital sales were almost equal in 2018 and it is predicted that 53% of the forecasted $24 billion in revenue will come from digital sales. It is also predicted that the number will reach 65% by 2023.

DFC Intelligence physical package sales versus digital gaming psn store image

In response to this, DFC is expanding its forecasting categories throughout 2019 to get a better picture of the "full story" when it comes to the shift to digital sales. One example of a unique wrinkle in this shift is that the sale of physical prepaid cards is going to be responsible for a chunk of digital sales. Here's an additional statement from DFC Intelligence on the future of the console market:

"Despite its long-predicted demise, the console market is expected to grow to record levels over the next five years. DFC Intelligence forecasts sales for both video game console hardware and software to reach $47 billion in 2022. This is up 67% over 2016.

Surprisingly this is in conjunction with expected growth in the core PC game market. There is an important crossover demographic between PC and console games that is just now coming to its strongest fruition.
Overall it is an exciting time because business models will be changing. This means a potential shakeup among the established players. It also creates significant opportunities for savvy newcomers. Stay tuned!"

Called the Worldwide Video Game Console System Forecast, DFC's document breaks down platforms, regions, and distribution method (retail, online). It also includes forecasts for the individual major systems, including PS4, PS4 Pro, Nintendo Switch, Xbox One, and Xbox One X. The full Worldwide Video Game Console System Forecast is available on the official DFC Intelligence website. Stay tuned to Shacknews for additional gaming and tech updates.

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