NPD has been underestimating digital game sales since at least 2010

The 2017 edition of the ESA’s annual Essential Facts report offered an overview of the ever growing game industry, but Ars Technica points out that this report also updated NPD data from past years to more accurately reflect actual consumer spending as well.

The new, “restated” reporting from NPD shows that spending on game software has actually been increasing steadily since 2010, whereas the previously reported data indicated somewhat of a spending plateau.

According to NPD, these discrepancies came from a lack of information on digital game and DLC sales in past years. For example, the 2016 report said that 44 percent of all consumer game spending was on physical versions of games in 2015. This year’s report now says that only 31 percent of game sales were physical in that same year.

As a result, 2015 consumer spending was previously reported as $16.5 billion, rather than the $23.2 billion indicated by current data. Those discrepancies go back as far as 2010 and range between 2 percent and 40 percent changes.

https://arstechnica.com/gaming/2017/04/the-us-game-industry-is-a-lot-bigger-and-less-physical-than-we-thought/

Xbox gamer's knew this was the case. Xbox games are obviously selling better digitally than Physical.

When Microsoft made 6.6 billion in 2016 ( Sony 7.8 billion) Xbox one with half the install base of PS4 you know something is up!

All I know is that gaming brings in a lot of money. And more money every year. Otherewise there wouldn't be more gamers every year, more games releasing every year, and more new developers taking a plunge.

That's all I know. I don't really like going by 'sales estimates' or what idiots like Pachter "guess" a game or system will sell.

Microsoft's gaming division includes mobile and PC. There's nothing up about it.

@loe12k: "When Microsoft made 6.6 billion in 2016 ( Sony 7.8 billion) Xbox one with half the install base of PS4 you know something is up!"

BS again coming from you. Those 6.6 billion is the entire xbox division which includes xbone, 360, xbox store on windows PCs, windows phones (even some profits in Android), Minecraft and Surface Tablets. By contrast Sony is basically just PS4, PS3 and PS Now.

Same for Sony. Sony got Vita, Playstation now and VR headsets.

Xbox on consoles is where they make they make the most money.

What percentage exactly? Source? They sell games on mobiles and mobile gaming is by far the biggest gaming industry so, even if that's correct, mobile gaming for them is probably a generous piece of the pie. Sony doesn't have anything like that to add to the Playstation sales.

Mobile gaming Microsoft, be real! And Windows Store is hated by most PC gamers and you have to update to Window's 10 to play xbox games.

Xbox gamers have switched to digital (huge numbers) the evidence is conclusive. Deny all you like facts don't change.

Minecraft is huge, probably top 3 biggest mobile games ever and it's from M$. So yeah, you get real...

Microsoft is not a huge player with mobile. I don't even think they make mobile games?

Xbox live on consoles is the big earner, to deny that is foolish.

I don't work for Microsoft or Sony to know what the percentage is. However it's obvious digital is huge for xbox one, when MS is launching xbox one game pass (a digital service) If the market was small MS would not have a service like this

Minecraft is huge, but remember it only costs $10 to buy a copy.

6.6 billion gaming revenue is a lot of money.

Sony only made 7.8 billion from PS4, PSN, Vita, PS3, VR headsets (games) PS4 pro and PSN now (2016)

Microsoft revenues from mobile and PC would be a tiny percentage.

With Minecraft alone they are. Minecraft on mobile is above 30 million sales now which is higher than any xbone game by far.

http://www.gamesindustry.biz/articles/2015-01-12-minecraft-pocket-edition-passes-30m-downloads

And yes they produce mobile games.

@loe12k: "Minecraft is huge, but remember it only costs $10 to buy a copy."

Users don't only spend money to buy a mobile game they spend money within the game.

Why you posting link's from 2015? You always post link's that make a a mockery of the point's you're trying to make!

30 million in 2015 now is definitely higher. SO you have 30 million+ users of a mobile game constantly spending money on it. Get a clue.

Another lamming conspiracy thread.

lol .. 30 million downloads 10$ they made 210 million.

Again Microsoft made 6.6 billion in 2016 (gaming revenue) with a B not a M. What percentage is 210 million taken from 6.6 billion?

You're article is 2015. The revenues announced recently are from 2016

Why does this guy keep thinking that the 6.6b all came from xbox?

@flyincloud1116 said:

Another lamming conspiracy thread.

Destroying the Playstation fanboy everryday with facts.

Users spend money in Minecraft, that's the whole point of mobile gaming. The bulk of the money is not done selling the game but be it in ads inside the game or for stuff users pay in the game. So those 30 million + users are contributing way more than 210 million.

In fact M$ also gets money from Minecraft PS4 sales which is one of the top selling games on PS4. So yeah the xbone profit is nowhere near 6.6 billion.

@dakur: he literally ignores everything you say and says something random lol

Where exactly did MS earn their money last year, is the topic here. Minecraft is not a new game and they only see $10 dollars every copy sold. What other mobile games are they earning from?

What's left then PC/xbox gaming and xbox one and 360!

Yep, it's his denial MO

@loe12k said:

@flyincloud1116 said:

Another lamming conspiracy thread.

Destroying the Playstation fanboy everryday with facts.

Lame Lamming.

Wrong again. You ignoring facts won't change the real world, you know that right?

The link you posted.

30 million downloads $10 300 million in total revenue. That's mean's 30 million owners of PS4 would have to buy a copy of Minecraft in 2016, just to make 300 million. This is M not a B.

You have no argument. You trying to come up with ways to disagree. Facts are there.

Microsoft's tablet division makes up 14% of the market share. Windows phone market share is still around 5%. Windows 10 takes up 22% of the PC market. That's more than Sony. MS also has Minecraft which makes them money on virtually every platform. Sony doesn't have a game like that.

You're going to have to show hard evidence that suggests the majority of digital sales comes almost exclusively from Xbox One and 360 and not from other gaming platforms like mobile, tablet, and PC. You're also going to have to show that Playstation owners haven't switched to digital as well.

Whatever. Live in that bubble you call home.

He doesn't, but dakur thinks no one uses windows store, so there's only xbox store, and minecraft that bring in the most money

Nope I think you're having trouble with school grade arithmetic.

30000000*(10+average spending within game) > 210000000

Learn to math

@FastRobby: he clearly does lol

Not to mention minecraft also offers microtransactions and paid dlc. He thinks MS bought Mojang for lolz and not because the game prints money...

Exactly, probably the profits from selling the game alone are the minimum. The bulk for this type of games goes in the extra stuff users pay for.

Nope. Other way around. He just claimed no one uses Windows store or windows phones and Micecraft isn't a huge deal for MS.

Windows 10 is an OS is not gaming revenue. You guys can't name one other game beside Minecraft then? This why you argument falls off the cliff because Minecraft is not big enough on its own to generate huge profits.

I just showed you 30 million copies of Minecraft 10$ each would only make 300 million. Even then we have to assume Microsoft sold 30 million copies of Minecraft in 2016

Bullshit Playsatation VR would be bigger. Microsoft mobile gaming platform is tiny.

So we left with only a few options left to where the 6.6 billion is coming from. PC/xbox gaming and xbox one/360

Minecraft: Pocket Edition cost 7$ 210 million.

I don't think many people use Windows Store or even Windows phones in comparison with the biggest stores and phones sellers out there but there are waaaaayyyyyy more people that use them than say, PSNow or PSVita. So Sony's division is way more reduced to consoles than M$, especially considering that Minecraft is practically on every system and store out there and it sells a ton. I wouldn't be surprised if Minecraft's profit alone is close to 1 billion.

I see no sources. So everything you said is unfounded and highly speculative. None of it is factual.

You still can't account for the 6.6 billion, i see. Come back to me when you have a good reply.

He's also assuming (because it helps his backwards logic) that PS consumers don't buy digital. If they buy at the same rate as Xbox consumers, his argument dies in a fire.

@loe12k: Wrong again. In fact why limit ourselves to pocket edition. Minecraft as a whole has sold 100 million +

http://www.theverge.com/2016/6/2/11838036/minecraft-sales-100-million

That alone without counting Microtransactions and DLC is close to 600 million profit. Now let's say that the average spending of users on Minecraft is $10 (being humble) and you get at least 1 billion dollars per year from Minecraft alone without even counting the actual game sales.

You got owned my son

lol what sources for what. The 6.6 billion MS gaming revenues is factual information. Minecraft information is factual.

What point you disputing exactly?

lol so true

lol you man are funny guy. So the 100 million sales came recently? How long is this game out now?

Ok just say Minecraft sold 20 million copies in 2016 at 10$ each that's 200 million. Say another 200 million on Micro-purchases and DLC

Thats 400 million and i am generous with this. 6.6 billion- 400 million= 6.2 billion

6.2 billion where is that coming from?

How do you not know that MS gaming includes Mobile, Tablet, and PC? Those are platforms that Sony's gaming division doesn't operate on as well as MS if at all. You're trying to ignore revenues from these three additional platforms to damage control MS making less than Sony.

So source on the breakdown of MS game revenue by platform?

I'm just saying what he's been telling for the last few months. That no one uses Windows Store, and definitely not for games so the revenue can't come from there. Hence it must come from Xbox, and Minecraft

so 70% is still physical? Does this include mobile games again? Why is digital being pushed so much?

Mobile too

What mobiles are you speaking of?

No way that number is so small when there are 100 million + copies of the game sold out there. That number probably is closer to 1 billion than not