Physical or digital video games? – Process

MADRID (Portaltic/EP) – One of the dilemmas that gamers usually face when purchasing a new video game is whether to buy it in physical or digital format, two options that highlight the conveniences of cloud gaming, but also highlight its drawbacks, such as the need to have an Internet connection to play or the control that the main cloud platforms can exercise over the availability of titles.

The video game industry has evolved a lot in recent years. Gone are the days when the first platforms launched on the market for playing video games, such as the Atari 2600, which arrived in 1977 using cartridges. Later, more modern physical formats appeared, such as CDs or SD cards for consoles and PCs. Now, digital games have become one of the most popular and most abundant formats for users.

According to a report published by the video game platform Newzoo, also picked up by GamesIndustry, the physical format only accounted for 5 percent of the profits generated by video game sales in 2023. In contrast, the remaining 95 percent of last year’s revenue corresponds to digital purchases, surpassing the figures for 2022, when this version of the games already represented 94.2% of sales.

In the case of Spain, according to data collected by the Spanish Video Game Association (AEVI) in its ‘Yearbook of the Video Game Industry in Spain in 2023’, sales of physical video games during the last year had a turnover of 1,038 million euros, while sales of titles in ‘online’ format amounted to 1,301 million euros.

The data therefore points to a trend that seems to embrace digital formats. However, both nostalgic and new players continue to question which format is best when it comes to acquiring a new title, given the disadvantages that digital games can entail.

Physical or digital video games?

Both formats, physical and digital, have pros and cons when it comes to enjoying video games, although it must be taken into account that these differences between one and the other will vary in relation to the needs and tastes of each user.

The main difference between the two is where the game is run. In the case of the digital format, there is the option of ‘cloud gaming’, which offers the possibility of playing through remote ‘hardware’, corresponding to a company’s servers. In this way, instead of using a physical disk and installing the game on the device to play locally, it runs in the cloud and only requires an internet connection for its operation.

This option is offered by the main video game development companies of today, such as PlayStation, Xbox, Ubisoft, Nintendo, Epic Games or Valve, which have online platforms where users can purchase titles. These are also stored in their personal accounts, which can be accessed through the cloud.

With this in mind, one of the main advantages offered by digital video games and cloud gaming is that they are easy to acquire, as users simply have to access the corresponding platform where it is available and buy it. Afterwards, they must either download it to their computer or play it in the cloud, in a relatively quick and easy way, without having to go in person to a store that sells them. On the other hand, physical games require purchase in a store, as well as being available in terms of stock.

Likewise, when using a digital format, another issue that must be considered is the need to have an internet connection for most games, even if they can be downloaded to a computer or console.

On the one hand, this condition allows users to play on any console and in any place, since the game is linked to a user account corresponding to a specific platform. However, when playing on a different device with the digital format, sufficient storage must be available and a series of minimum specifications must be met in order to be able to play. For example, a processor or computer with enough power to run it.

Additionally, the need to use an internet connection can be a problem if there is interference or it does not work properly, as it renders the game unusable until the connection is resumed. Therefore, this totally hinders the gaming experience.

What if the gaming platform closes?

Despite the advantages offered by the digital format, one of its major disadvantages is that users are at the mercy of the conditions of each cloud service in order to use the titles they have purchased.

That is, if the distribution platform or developer stops the video game in question, the players will lose it, without the possibility of being able to use it again. This is because, by purchasing the digital product, users are agreeing to buy software that is not really their property and that, at any time, may no longer be available for download or for use in the cloud.

This feature has already been the subject of criticism from gamers on several occasions, such as Ubisoft’s decision to remove The Crew from its game libraries. This incident highlighted the ability of companies to ban access to their titles at any time, leading some users to call for the passage of digital consumer protection legislation.

Likewise, if the platforms cease the service of a video game, the user loses the service and no purchase refunds are made. This is because the games are the property of the platform in question. For example, in the case of PlayStation, as stated on its Terms and Conditions of Use page for its PlayStation Plus service, “all rights to the content of PlayStation Plus are reserved by Sony Interactive Entertainment, its partners and licensees.”

The physical video game, on the other hand, is the property of the player and, therefore, he has total control over it. Thus, users can play it as many times as they want, lend it, resell it or even leave it as an inheritance to a friend or loved one.

This allows for a more flexible situation for second-hand video games that also makes it easier to bring titles to more users, something that digital games cannot allow, although there are also shared platform accounts between several users.

The physical format will disappear

Given the numbers that support digital sales, the future of physical video games seems to be increasingly unclear. In fact, this situation is driven by some video game companies such as Ubisoft, which, as it stated earlier this year, believes that the shift from physical video games to cloud gaming “is a change in the consumer that must occur,” and that the subscription model is a “tremendous growth opportunity.”

Other major platforms, such as Xbox and Capcom, continue to see room for physical gaming in the industry. Microsoft Gaming CEO Phil Spencer said Xbox has no plans to abandon physical releases of its games.

The same goes for Capcom, which recently detailed that “given the significant number of users demanding physical games” they do not currently expect to remove physical products from their catalog.