Capcom does not expect the continuing decline of physical game releases to cause a major business problem, despite acknowledging that around 10 per cent of its unit sales still come from discs and other physical formats.
During announcing its latest quarterly results, an investor asked what effect the shrinking physical market might have over the medium to long term. Capcom’s answer was brief:
“Approximately 90% of our unit sales are digital. We do not anticipate a significant impact at this time.”
The response came alongside strong results. Capcom reported that game unit sales rose by 68 per cent compared with the same period in 2025, while sales of Pragmata performed better than expected.
Capcom is prioritising digital sales
Capcom’s financial filing makes the company’s direction clearer. It describes continued investment in expanding digital sales globally and highlights efforts to increase unit sales through the new intellectual property Pragmata and stronger performance from older catalogue titles.
In practical terms, Capcom is focusing on releasing games that attract buyers and making more of its existing library available through digital storefronts. That approach appears to be working financially: net sales were up 54.7 per cent compared with the first quarter of 2025, while ordinary profit increased by 81.1 per cent.
What happens to the remaining physical buyers?
Capcom’s confidence is understandable when nine out of every ten unit sales are digital. However, treating the remaining physical audience as an insignificant detail leaves an important question unanswered: how many disc buyers would simply move to digital, and how many would decide not to buy at all?
Some customers would likely accept a digital-only release, even reluctantly. Others value having a boxed copy that can be resold, lent, collected or kept independently of a platform’s online services. Losing up to 10 per cent of potential sales may be manageable for Capcom, but it is not the same as having no impact.
A wider industry move
The shift is also visible elsewhere in the games business. PlayStation has reportedly maintained plans to remove physical discs entirely from its hardware strategy from 2028, despite strong opposition from some customers. Producing and distributing boxed games costs more, while publishers have found that many players will pay the same price—or more—for a digital edition.
For shareholders, that makes digital distribution increasingly attractive. For players who care about ownership, preservation and collecting, it represents another step away from the traditional game market.
Arcade enthusiasts see the contrast every time they choose a dedicated cabinet or physical machine: the experience is tied to hardware in the room rather than a licence held inside a digital storefront. Our Arcade Blog covers more developments across that changing arcade and gaming landscape.
For readers considering a more tangible gaming setup, the Arcade Machine Buying Guide explains the main points to weigh before choosing a cabinet, while the range of arcade machines offers a physical alternative to an increasingly digital market.
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