Analysts have predicted that video games will be 100% digital by 2022. And truly? We’re not at all surprised. After all, in these modern times, gamers are given a lot of choice in how they would like to play their games. If you’re a particularly laid-back person then digital games are just so much simpler to have. No getting up to change games? Sounds pretty sweet, doesn’t it? But there are also individuals who prefer to have a physical copy, as it feels like they truly ‘own’ the game.
However, according to a report from Piper Jaffray, provided by analysts Michael J. Olson and Yung Kim (via ComicBook.net), suggests that physical games will completely disappear by 2022. What’s more, the report conveys that the market for physical games is shrinking roughly 10 points per year, which would explain why stores such as Toys R Us, Grainger Games and now Gamestop have suffered.
The analysts go on further to state that, “we believe it is a certainty that video games will be 100 percent digital in the coming years, and while exact timing is hard to pinpoint, we think 2022 is a realistic expectation.” Which, if true, means that you should start buying all the physical games you feel you need to ‘own’ just in case going fully digital goes terribly wrong.
But what may upset gamers more than going 100% digital, is the possibility of a huge movement towards subscription and streaming-based models for video games. Doing so would benefit publishers after all, but can the same be said for gamers out there? Especially those who rely on physical/downloaded games due to a lack of stable internet connection.
The report went on to say that, “our expectation is that major publishers will increasingly test and commercially develop streaming game offerings over the next 3-5 years. Streaming games from the cloud, without the need for dedicated hardware or massive downloads, would materially grow the TAM (total addressable market) for high-end console-style titles.”
“Specifically, today the primary market for major video game publishers is tied to consumers that own an Xbox One, PS4 or gaming PC, which currently has an installed base of 150-250M (depending on how gaming PC is defined) and a minimum price point of $199 (Xbox One S), which creates a barrier to entry for many would-be gamers.” It continues, “with ongoing data center build-outs and improving internet speeds, streaming games from the cloud could be a commercial reality within 2-3 years.”
What are your thoughts and opinions on the possibility of going 100% digital, as well as streaming games from the cloud? Let us know in the comments below.
