business news Sony, Nintendo: Sales in cans that have lead in the wing?
There was a time when bricks and mortar sales accounted for almost all of the video game giants’ revenue. The world was so simple. The customer would go to a shop, buy his boxed game, and play it with joy and good humor. But with ever faster Internet connections and the arrival of hard drives in our consoles, our ways of consuming have evolved along with business models. We started buying DLCs, season passes, then 100% digital games. Today, the part of the dematerialized is essential to the good financial health of our giants. The proof with the recent reports published by Sony and Nintendo.
The good figures of 100% digital are anchored in the long term
This morning, Sony and Nintendo both released their financial statements for the 2021 fiscal year. Figures released on the same day reveal some similarities, such as a slight drop in sales of the PlayStation 5 and the Switch. . What the numbers show once again is that the revenues generated by the dematerialized have become vital for the manufacturers.
At Sony, the figure which includes sales of games in digital format and those of DLC amounted to 1,424 billion yen (10.3 billion euros), down slightly from the previous year despite a better last quarter. than the previous one. The revenue generated by the strict sale of games in digital format is nevertheless increasing, 570,842 million yen (4.1 billion euros) compared to 542,484 million yen (3.955 billion euros) for the 2020 fiscal year. The share of digital (games + DLC) represents 53% of the turnover. business of the Game & Network Services segment. It rises to more than 62% if the revenues of the Network Services branch are excluded. In terms of software, dematerialized now represents 66% of game sales at PlayStationcompared to 65% last year.
On the Nintendo side, we recognize the “strong sales” downloadable versions of several Switch games as well as increased sales of additional content, especially the Animal Crossing: New Horizons Happy Home Paradise expansion and the Mario Kart 8 Deluxe Booster Course Pack. The progenitors of Mario explain that the good figures linked to digital sales, combined with the good health of Nintendo Switch Online, helped to increase the digital results by 4.5% compared to the previous year, reaching 359.6 billion yen (2.6 billion euros). At Nintendo, 100% digital (microtransactions, dematerialized games, etc.) represents more than 42% of software-related revenues. A globally stable result compared to last year. However, the number of downloads of boxed games increased in the fourth quarter and almost reached the level of the first quarter of 2021 (66.8 billion yen, 487 million euros).
The dematerialized stronger than ever?
These dematerialized results, if they are quite close to those observed last year, are in fact rather impressive. when we take the time to contextualize. The figures for the previous fiscal year (FY20) were based on a period from April 1, 2020 to March 31, 2021. However, this period was disrupted by confinement phases required due to the health crisis, all over the world . This spawned a blast consumption of games in digital format. Some analysts predicted a sharp decline in this figure when the situation returned to normal. Although there were still restrictions at the time of recording the results (April 1, 2021 to March 31, 2022), they were not comparable to those encountered a year earlier. What these results begin to prove is that Covid or not Covid, the players seem to have truly adopted the dematerialized in their way of accessing video games.
By CarnbeeJournalist jeuxvideo.com