By Jon Scarr
Physical video game sales have been in a rough spot for years, but 2025 is finally bringing a bit of good news. According to new industry data shared by Skinsluck, physical copies are on track to finish the year with 0.1 percent revenue growth. It is a tiny increase, but still the first positive step since 2020.
After nearly a decade of declines, the market is showing a pulse again. The growth is modest, though, and the long-term outlook remains slow.
Physical Sales Have Dropped Nearly 30 Percent Since 2017
Collectors and long-time gamers continue to support physical releases, but the wider market has shifted dramatically. Since 2017, physical game revenue has fallen close to 30 percent, dropping to about 11 billion dollars last year.
The reasons are clear. Digital downloads became the default for many gamers because they are fast and easy to access. Publishers followed that trend by focusing on digital storefronts, which cost less to maintain and deliver higher profit margins.
Subscription services also changed the landscape. Xbox Game Pass, PlayStation Plus, and cloud gaming options gave people more ways to play without needing discs. All of this combined to push physical games out of the spotlight.
2025 Brings a Small Increase, But Growth Will Stay Flat Through 2030
Statista’s latest projections show physical game sales reaching 11.3 billion dollars in 2025. That is only a 0.1 percent increase from last year. The growth continues through 2030, but very slowly. Revenue is expected to rise only 0.5 percent per year, barely moving the market upward.
The number of people buying physical games will actually go up. Statista expects that number to climb from 1.15 billion to 1.21 billion between 2025 and 2030. The problem is that these same buyers are spending less per game. Average spending is expected to drop from 9.81 dollars to 9.57 dollars over the same period.
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| Revenue growth for physical video game sales from 2018 to 2030, based on Statista Market Insights. |
Physical Copies Are Becoming a Smaller Piece of the Gaming Industry
Physical games will make up only 2 percent of the gaming industry’s total value in 2025. By 2030, that share drops to 1.5 percent. It is a major shift from the era when boxed games were the standard way to play.
While physical media stalls, every other major gaming segment keeps rising.
Here is how the rest of the industry is expected to grow by 2030:
- Mobile games up 30 percent
- Gaming networks up to 5.5 billion dollars
- Online games up to 37.2 billion dollars
- Downloadable games up to 29.3 billion dollars
- Gaming hardware up 40 to 45 percent
- In-game advertising up 40 to 45 percent
- Cloud gaming up 175 percent over the next five years
Physical games now stand out as the only segment not matching the industry’s overall growth.
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| Industry projections show cloud gaming surging ahead, with physical video games seeing only minimal long-term growth. |
A Market That Is Stabilizing, Not Recovering
The small bump in 2025 is better than another decline, but it does not signal a real comeback. Instead, it suggests the market may finally be hitting a stable point. Collectors remain loyal. Some parents still prefer discs. Certain regions continue to rely on physical media.
But the overall direction of the industry is clear. Digital formats and cloud gaming are shaping the future of how people play. For physical games, the next few years look more like a slow drift than a return to form.