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PC Digital Sales Approaching Retail

Industry tracking firm NPD Group today released the findings of a survey that show that PC games are selling nearly as many copies via online distribution channels as they are at retail.

The company's monthly sales charts have always only incorporated retail sales. Finding out that nearly half of PC gaming software sales are unaccounted for in those numbers is enlightening, to say the least.

NPD used its ongoing consumer survey methods to collect information about their purchasing habits, and extrapolated the data to find that 48% of total full-game sales are through digital channels, as well as 36% of the dollar value of sales.

The shocking numbers aren't massively inflated by social and casual gaming, either -- we're talking about Half-Life and Call of Duty as much as Bejeweled here. NPD found that "frontline digital retailers" (i.e. Steam) increased their share of the market in 2009. The firm points toward the growth of free social and mobile gaming as a key driver in the relative decline of the social games sector. "The popularity of social network gaming increased from Q3’09 to Q4’09 as 4.8 million more people played games on a social network in the U.S.," said NPD analyst Anita Frazier.  "This demonstrates how consumers can now experience casual types of games through myriad vehicles, broadening the competitive landscape."

The survey also uncovered a 30% growth in the use of iPhone and iPod touch as gaming devices, and that an overwhelming 97% of people who downloaded a game app downloaded a free one.

The top five "frontline" retailers from the NPD survey, in order, are:

  1. Steam
  2. Direct2Drive
  3. Blizzard
  4. EA
  5. Worldofwarcraft.com

Ouch for Stardock's Impulse platform. Anyone surprised that World of Warcraft is basically on there twice?

On the casual side, the top five are:

  1. Bigfish Games
  2. Pogo
  3. Gamehouse
  4. iWin
  5. Realarcade

It would appear that rumors of PC gaming's demise are greatly exaggerated, according to the numbers anyway. How does this NPD report jive with your own experiences?

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Comments
  • I'm also sad (though not necessarily surprised) that Good Old Games (GOG.com) isn't up there. Though I guess older titles are never going to be selling in the same numbers as new releases.

  • I really hope retail stays forever. I just dont like buying 50$ games digitally.

  • Would think they would have surpassed it by now.

  • Well duh, no one carries PC games anymore for retail.  

  • This is a sad day for me it may be narrow minded but the day that digital sells are the only way to play will be the day I stop gaming.

    Not really but still I like hard copies of my games.

  • With PC games I have always preferred to download. Got a huge HDD, and a unique key tied to my account... why would I want to have to keep track of a CD?

    Consoles on the other hand, completely opposite story. Retail HDD space is limited, and buying digital copies means no trade in or letting friends borrow.

  • I'm a PC gamer primarily, but the problems I see with digital media are: resale value (being zero in most cases) and DRM restrictions.  Still I'd rather  play on my PC than my 360 or PS3.  

  • DD sucks. Retail forever!

    Seriously though, I like tangible objects for my money. Not data I can't actually see that might be taaken away whenever the publisher feels like it.

  • I always prefer to get a physical copy of a PC game if it's available and only buy through steam/other download distribution system if that option is unavailable.

    PC gaming being dead or near dead has been and will always be nothing more than a rumor.

  • While I Do prefer hard copies, I would accept a download of a game I really want to play. I think its great in general to hear that PC Gaming is still very alive and even changing a bit.

  • I <3 Digital Distribution! Not only for PC, but for other consoles as well. Scratching disc and the destruction of discs is no longer a problem.

  • Hm, well that is good news, I guess. I though still like my content in physical form. Something about having an actual disc, even if it is broken brings back more memories then seeing it on a TV screen.

  • I knew that was the case, but too many media outlets had written the PC off long ago... In your face doubters!!!

    To those who want a physical copy... ie retail....   I have alot of purchases through steam/GFWL... you can backup the games onto a DVD... giving you a hardcopy... so don't get upset over DD, it's the future.. and I'm excited about it

  • Mod

    It seems the trend reflects my own.  With Steam and Xbox Live arcade I frivolously spend more just out of sheer convenience.  I can see videos and screenshots of a game, download a demo and if I enjoy it BAM paid for and downloaded.  But this typically is for games I can't find at retail.  I've bought less than 5 retail games via Steam.

  • I haven't bought a lot via DD for PC. I'm thinking of hitting up Steam and GOG for some older stuff though.

    Do any of those sell for Mac as well? My powerbook is kinda all work, no play atm (go fig, it is a Mac...).

    On console side, I buy a lot via XBLM; most recently I dl'd DeathSpank and Limbo.

    I have to give Limbo a glowing recommendation to (pretty much) everyone ever (probably over a certain age, though there are filters to nix the gore, still pretty creepy).

  • I got Steam for the free Portal. After that I bought one or two other games during one of their incredible sales. ( I got Mass Effect for $5)

  • It would be cool to access Steam on my ps3 or 360.

  • I've yet to purchase any major releases digitally.  I think that the future points to digital distribution as an eco-friendly means of supplying games to the consumer.

  • Those numbers don't surprise me, what with new digital strategies. If you paid for the game and only got to download it once, that would stink. But with Steam, you pay for it, and you can download it to every PC you own.

    I still prefer retail copies for big-name games (I'll be getting Civ V at retail) but digital is becoming the dominant form for smaller games like World of Goo and other indie titles.