The news that Electronic Arts has decided to gradually end the sale of physical games in Germany, Austria, Switzerland and Scandinavian countries suddenly hit the agenda like a bombshell. In fact, FIFA 23 and Need For Speed Unbound are the last games released as boxed in German-speaking countries. It is even said to happen.
In the news shared by Games Wirtschaft, it is announced that EA will no longer sell packaged products in Germany, Austria, Switzerland and Scandinavia.
Of course, this decision did not come out of nowhere. EA stated in its annual report that “the continued shift from physical products to digital downloads continues to have a negative impact on revenue development.” The decline in physical copies sold can be seen globally. In the US, for example, physical copy sales fell from 80% of total copies sold in 2009 to 17% in 2018.
In its plans for the future, EA says it should forgo physical sales to avoid the financial losses caused by selling physical products in a market that doesn’t want them. In its annual financial report, it was stated that the most important thing for EA is “the ability of the company to develop and support digital products and services”.
Electronic Arts is not alone
EA isn’t the only publisher looking to reduce physical game distribution. Activision Blizzard terminated its German subsidiary in May, whose commercial operations ended in March 2021. All staff based in Germany were released, while publishing activities were moved to Activision Blizzard’s European Headquarters in London.
Activision Blizzard’s local physical sales in Germany fell from €55 million in 2018 to €35 million in 2020 as digital sales rose steadily. A localized approach to sales and marketing has become less and less important as digital sales take precedence over physical sales. Therefore, regional centers located in Germany became less useful for selling products.
These decisions, which companies have started to make one after another, may be the beginning of the end for the sale of physical video games. The last decade has seen publishers predominantly report a shift from physical to digital sales in the gaming industry. EA and Activision Blizzard’s decisions to pull out of Germany and downsize their approach to physical copies could be the first big examples of other publishers moving away from boxed games like in other regions.
Despite this, we may see an increase in physical collector’s editions and limited editions, such as special editions of games.
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