Nintendo has confirmed that a significant portion of its audience still prefers physical cartridges, even as the industry moves toward digital distribution. In its latest financial results, the company reported that digital sales accounted for 61.5% of total game sales in the first quarter of the 2027 fiscal year, leaving 38.5% from physical sales.
Digital Sales Surge, But Physical Remains Strong
For the period from April 1 to June 30, 2026, Nintendo generated ¥132.7 billion (£623.4 million) from digital sales, a 90% increase compared to the same quarter last year. The proportion of digital sales rose by 2.2% year-on-year, but the remaining physical share is still substantial, especially when compared to Sony's recent figures.
While Sony has announced plans to cease production of physical PlayStation discs after 2027, Nintendo appears committed to keeping cartridges in the market. The company's audience, which includes many casual players and families, continues to buy physical games at a notable rate.
Context and Caveats
The digital sales figure includes more than just full game downloads. It also encompasses DLC (including Switch 2 Edition upgrades), Nintendo Switch Online subscriptions, and digital versions of packaged software. However, it does not include digital copies of Mario Kart World bundled with the Nintendo Switch 2 console. These factors may slightly skew the numbers, but the physical sales percentage remains significant.
According to Nintendo's financial report, 'Digital sales increased year-on-year due to factors including an increase in sales of downloadable versions of packaged software and the depreciation of the yen.'
Comparison with Sony and Xbox
Sony recently reported that 82% of all PlayStation 4 and 5 game sales were digital in its last financial quarter. That leaves 18% physical, which, while smaller, still represents a large volume given that Sony sold 66.1 million games in that period. Xbox, with its Game Pass subscription service, has a much smaller physical presence, making a potential disc-less future less impactful for its users.
Future Implications for Nintendo
The data suggests that Nintendo would be unwise to abandon physical games in the near future. The proportion of digital sales has fluctuated over the past year, from 51.2% in Q2 to 67.2% in Q4 of the 2026 fiscal year, but the physical market remains robust. The Switch 2's introduction of Game-Key cards and the lower digital prices for some titles indicate a gradual push toward digital, but the company is likely to maintain physical options for the foreseeable future.
Industry analysts note that Nintendo's focus on family-friendly and casual gaming experiences makes physical media more appealing to its audience, who may prefer tangible products over downloads.
