Recent stats in Circana’s monthly report (via Kotaku) show that Xbox accounts for just over 4% of all new physical video game sales, leaving 32% for PlayStation, and the majority with Nintendo at 63%. The tiny remainder reportedly goes to physical editions released on PC, which are few and far between, but do exist – 007 First Light and Assassin’s Creed Black Flag Resynced being two examples.

Physical video game sales have been in decline for well over a decade, but the topic has become a big talking point lately. Sony announced it will stop producing PlayStation discs starting in January 2028, and the company continues to face backlash over its decision – Sony’s ex-president recently downplayed the issue, noting he’s a “Totally digital consumer”.

Xbox Game Pass is a big reason for low physical sales

With just 4% of U.S. sales in July 2026 for Xbox, one of the biggest factors in this whole equation is the popularity of Xbox Game Pass – a completely digital game subscription service. While it has had its problems, losing “millions” of subscribers after a price hike late last year, it remains popular (and Xbox readjusted costs a few months back, which no doubt helped).

Notably, with nearly a third of physical sales in the United States, PlayStation’s decision to end support has been met with heavy backlash, and it will particularly affect regions where physical remains popular – Game España was quick to post a response, noting it will not “stand idly by” following the decision.

As for Nintendo, there doesn’t seem to be any hint of ending physical media for its Switch cartridges. At the same time, the company does encourage digital sales, pricing its first-party games $10 higher if you buy a physical copy. The Nintendo Switch 2 also has much more storage space than its predecessor to facilitate digital media. Comparing the major platforms, Circana executive Mat Piscatella says there are “some pretty significant differences in player base preference,” including “where they want to buy them” – which comes into play for physical sales.

“It shows how important Nintendo platforms are to the physical market and the retailer market in particular. What matters to a Target? It’s going to be Nintendo, and what doesn’t matter to a Target or a Costco? It’s Xbox, because the high price of the consoles, and they’re not selling software.”

Mat Piscatella, Executive Director, Games and Video Game Industry Analyst at Circana, via Giant Bomb

Overall, digital video game sales probably aren’t making a big resurgence any time soon, but the issue of free choice and ownership remains the big question mark. The digital-only launch of GTA 6 is already setting a precedent for big game publishers, as the title enjoys excellent pre-order sales so far, with nearly 9 out of 10 for the $100 Ultimate Edition, too.

About the Author

Jack Goodall

At PC Guide, Jack is mostly responsible for reporting on hardware deals. He also specializes in monitors, TVs, and headsets and can be found putting his findings together in a review or best-of guide.