Highlights
Walmart could be phasing out physical Xbox game sales due to declining sales, with other platforms potentially following suit in the future.
Best Buy may discontinue the sale of physical games in their stores due to the rising popularity of digital game sales, which has surpassed boxed copies. The profitability of physical media is diminishing. The CEO of Limited Run Games anticipates this trend to persist until 2024, speculating that Microsoft might even completely stop distributing physical games. However, Nintendo is likely to continue selling physical games for a few more console generations.
Walmart may soon phase out physical Xbox game sales, according to recent rumors. This comes in response to a report earlier this year highlighting a decline in physical game sales. As a result, major publishers and retailers are considering adjustments to their game distribution strategies by 2024.
Best Buy, one of the world's largest gaming retailers, has also been affected by this trend. Speculation has arisen that Best Buy may discontinue selling physical games in stores due to the dominance of digital game sales over boxed copies. The retailer argues that the increase in digital purchases has rendered physical media less profitable. Aligning with this report, there are indications that Walmart will likely follow suit, starting with Xbox games.
John Fairhurst, the CEO of Limited Run Games, recently claimed on Twitter that physical Xbox game sales are being phased out, starting with other platforms in the future. He anticipates that this trend will continue until 2024, with the possibility of other retailers following suit.
In response to concerned gamers, Fairhurst acknowledged that retailers are facing challenges in making in-store game sales and expects this department to shrink over time. As an example, a user on Twitter mentioned that their Walmart was hardly ordering any Xbox games, and Fairhurst confirmed that this aligns with what he has heard. He also predicts that Microsoft may be the first to stop distributing physical game discs altogether, as some retailers have already ceased selling physical Xbox games.
Earlier this month, a Ubisoft representative discussed the enduring demand for physical game releases, particularly in Japan where Nintendo games sell particularly well. Fairhurst predicts that Nintendo will continue to prioritize physical formats for several more console generations, citing the majority of Limited Run Games sales on Nintendo platforms. Additionally, he anticipates a resurgence of specialized gaming retailers, such as mom-and-pop shops, to cater to the preferences of gamers who prefer physical releases.