Mat Piscatella of Circana revealed an interesting fact regarding consumer spending on physical copies of video games sold by Nintendo and Xbox in 2023, revealing that the big N earns more than five times as much as the Redmond company from this point of view. The data refers to the US market.
Precisely, Piscatella states: “In the United States, in 2023, the physical expenditure on software for Nintendo platforms it accounted for more than half of total physical software spending. Physical spending on software for Xbox platforms represented less than 10% of total physical spending.”
This allows us to deduce that PlayStation it captures approximately 40% of revenues in terms of total spending by gaming consumers on physical copies.
What do these data mean?
Some clarifications need to be made understand the data in question. First of all, revenue does not represent units sold. You're not saying that Nintendo sells five times as many physical games as Microsoft. It all depends on the average price of the games.
Furthermore, these numbers do not represent the entire market. For all consoles but especially for Xbox and PlayStation, one a good portion of sales takes place digitally (premium sales and services). It is therefore not stated that Xbox derives or even gains in total a fifth of Nintendo.
What this data allows us to notice is that Xbox already doesn't have a large physical presence in the physical market and therefore it should not be too surprising that, according to rumors, it is disinvesting in the distribution of physical games.
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