Just like the newspaper, book and movie industries, the latest numbers show the video game sector quickly moving to digital and away from physical forms of content.
The NPD Group is out with its latest video game stats and total sales of physical video and PC software in the U.S. dropped 21 percent from 2011. On the other hand, digital sales, which include social network and mobile games, rose 16 percent from $5.09 billion to $5.92 billion in 2012.
Consumers spent $7.09 billion on new physical video and PC game software during 2012, and $1.79 billion on other physical forms of content (used and rental).
Overall, total video game sales dropped nine percent from $16.34 billion to $14.80 billion.
2012 revenue in Microsoft’s Entertainment & Devices Division, home to the Xbox, decreased 11 percent to $3.77 billion based in part on lower sales of the Xbox 360 console. Microsoft shipped 5.9 million Xbox 360s during the quarter, compared with 8.2 million a year earlier.
Nintendo, meanwhile, reduced its forecasts for the Wii U, Nintendo 3DS and DS for the current quarter.
Previously on GeekWire: Xbox 360 ‘Kinect Effect’ fades as console market declines
Reach staff reporter Taylor Soper at email@example.com or on Twitter @Taylor_Soper