The rate of decline in US physical video game software spending accelerated in 2024.
Spending on physical video game software in the US has been cut in more than half since 2021 and is now more than 85% below its 2008 peak.
We'll see if Switch 2 can help slow/reverse this trend in 2025.
By design. Cut all the middle men (including thousands of jobs in logistics, distribution and sales) and absorb all of that trickled down wealth upwards in the form of bonuses to the gents who annihilated an entire industry, not by lack of demand, but because the incentive structure is completely opposite to the interests of society at large.
Indie developers couldn’t afford those systems to begin with, so there was nothing to cut. Then, some of their games got popular, and only a free of them still make boxed sets.
Don’t forget AAA is turning to so many F2P experiences.
Well, yeah, but people say they won’t pay 150 bucks for a game, so that stable 60 dollar price had to come from somewhere.
Honestly, it’s a lot of whiplash to see people paint this as a big corporate conspiracy and then turn around to defend Valve who, let’s not forget, invented the whole idea. It’s not like chain gaming retailers were a particularly strong force for good, either, but they did pay wages to more people than Steam, I guess.
It’ll be very interesting to see how much of this is people walking away from the Switch, coming back to the Switch 2 or just… you know, only ever playing Fortnite and Minecraft for their entire lives. The issues here are bigger and not a Sony conspiracy to steal trucker wages (although there’s that, too).
You could download games from multiple publishers years before Valve did it, too. Doesn’t mean Valve didn’t come up with the first, largest digital distribution platform for games that was then the template for every first party (and most of the digital media distribution in other media industries).
Best I can do for you is let you have that and agree that piracy invented it and Valve monetized it, which is actually worse?
Certainly means that large companies didn’t invent digital distribution as some form to eliminate physical distribution as an anti-consumer move. Consumers (via piracy) invented it for convenience.
Well, I think there’s a nuance between the notion of people hosting files and sharing them for piracy purposes, which is technically no different than hosting and distributing any other file, and a platform for digital distribution of media.
You could argue that peer-to-peer services with built-in search, like Kazaa or eMule came a lot closer and that’s defensible, but the birth of modern platforms is less on the tech to host and share the files and more on the ability to do DRM and sell access tokens digitally. Modern digital distribution is less an iteration on piracy software and more a response to it to provide something that could compete on convenience while being monetized, having DRM and, yeah, cutting a lot of people out of the money loop.
And on all those counts… yeah, it was Steam. Valve did it first and did it effectively while music labels and movie studios were still hoping lawyers would fix things for them.
By design. Cut all the middle men (including thousands of jobs in logistics, distribution and sales) and absorb all of that trickled down wealth upwards in the form of bonuses to the gents who annihilated an entire industry, not by lack of demand, but because the incentive structure is completely opposite to the interests of society at large.
Indie developers couldn’t afford those systems to begin with, so there was nothing to cut. Then, some of their games got popular, and only a free of them still make boxed sets.
Don’t forget AAA is turning to so many F2P experiences.
Well, yeah, but people say they won’t pay 150 bucks for a game, so that stable 60 dollar price had to come from somewhere.
Honestly, it’s a lot of whiplash to see people paint this as a big corporate conspiracy and then turn around to defend Valve who, let’s not forget, invented the whole idea. It’s not like chain gaming retailers were a particularly strong force for good, either, but they did pay wages to more people than Steam, I guess.
It’ll be very interesting to see how much of this is people walking away from the Switch, coming back to the Switch 2 or just… you know, only ever playing Fortnite and Minecraft for their entire lives. The issues here are bigger and not a Sony conspiracy to steal trucker wages (although there’s that, too).
Valve didn’t invent the idea, piracy did. You could download full games years before any legal distribution channel allowed you to do so.
You could download games from multiple publishers years before Valve did it, too. Doesn’t mean Valve didn’t come up with the first, largest digital distribution platform for games that was then the template for every first party (and most of the digital media distribution in other media industries).
Best I can do for you is let you have that and agree that piracy invented it and Valve monetized it, which is actually worse?
Certainly means that large companies didn’t invent digital distribution as some form to eliminate physical distribution as an anti-consumer move. Consumers (via piracy) invented it for convenience.
Well, I think there’s a nuance between the notion of people hosting files and sharing them for piracy purposes, which is technically no different than hosting and distributing any other file, and a platform for digital distribution of media.
You could argue that peer-to-peer services with built-in search, like Kazaa or eMule came a lot closer and that’s defensible, but the birth of modern platforms is less on the tech to host and share the files and more on the ability to do DRM and sell access tokens digitally. Modern digital distribution is less an iteration on piracy software and more a response to it to provide something that could compete on convenience while being monetized, having DRM and, yeah, cutting a lot of people out of the money loop.
And on all those counts… yeah, it was Steam. Valve did it first and did it effectively while music labels and movie studios were still hoping lawyers would fix things for them.