DIGITAL LIFE

Digitization of video games may end physical versions until 2022
According to one of the latest reports published this week by analyst Piper Jaffray, the revenue generated from the sale of video games will be (almost) exclusively digital as early as 2022. The company believes that the trend in the market will continue, with players to abandon (almost) completely the purchase of physical video games in a space of four years.The study, by Michael J. Olson and Yung Kim, indicates that digital revenue will be very close to 100%, with the retail sales share being very residual. The estimate is based on the consistent decline of 10% per year that has been observed in this last segment."We believe it's a sure estimate that video games will be very close to being 100% digital in the coming years, and while it's hard to pinpoint an exact date, we're of the opinion that 2022 is a realistic expectation," write analysts. The report also suggests that this transition from physical to digital will be leveraged by the gradual popularity of streaming services, which are expected to start receiving more investment from studios in this sector. The estimate is that in a space of two to three years, this technology is an established business reality, that the next generation of consoles can help consolidate. The profit margins for publishers will be "dramatically" higher.



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