Nintendo's digital sales nearly doubled during the April to June 2026 quarter, with the company reporting stronger growth in eShop and downloadable purchases. Learn more about what drove the increase and what it could mean for physical media here.
Nintendo Digital Sales Nearly Double to 132.7 Billion Yen Amid Concerns Over Physical Media
Nintendo Reports 90% Digital Revenue Surge in Q1 2027
Nintendo’s digital sales nearly doubled during Q1 2027 (i.e., the quarter of April to June 2026), with digital purchases through the Nintendo eShop contributing to the increase. The figures come at a time when concerns over the future of physical game releases have grown following Sony’s decision to end manufacturing PlayStation game discs in 2028.
In their recent financial report, Nintendo reported digital sales of 132.7 billion yen, up 90% year over year from 69.8 billion yen during the same period last year. Digital revenue accounted for 61.5% of the company’s dedicated video game platform software sales, up from 59.3% a year earlier.
Nintendo attributed the increase primarily to stronger sales of downloadable versions of packaged software, as well as the impact of "exchange rates". During the same quarter, Nintendo Switch 2 software sales reached 9.46 million units, while software for the original Nintendo Switch climbed to 33.81 million units.
The figures, however, do not mean that 61.5% of Nintendo games were purchased digitally while the remaining 38.5% were bought physically. The percentage is based on how much money Nintendo earned from software (revenue), not the number of games players bought in each format (purchases).
To explain, digital sales encompass more than download copies of full-priced games. Nintendo’s financial report says the category includes "downloadable versions of packaged software, download-only software, add-on content and Nintendo Switch Online." Revenue from software bundled with hardware is excluded from the calculation and recognized entirely as hardware sales. As a result, games included with console bundles, such as Mario Kart World, contribute to hardware revenue even though their software units are still counted separately.
Downloadable software purchased through the Nintendo eShop is recognized as digital revenue, while physical products, including Nintendo Switch 2 Game-Key Cards, continue to be treated as physical software. Although Game-Key Cards require players to download game data after purchase, Nintendo does not classify them as digital sales in their financial reporting, unlike Capcom, which said in their FY2025 Financial Results Q&A that they recognize Game-Key Card sales as digital.
Developers and Publishers Find Bigger Profits Outside of Physical Discs
Nintendo's latest earnings report comes weeks after Sony confirmed it will stop manufacturing PlayStation game discs beginning in 2028, a decision that reignited discussions among players about the future of physical games. Nintendo has announced no comparable plans and continues releasing their first-party titles at retail alongside digital versions, though players have raised concerns over lower digital pricing for select games and the increasing use of Game-Key Cards by third-party publishers.
The discussion is one Nintendo has acknowledged for years. During a 2009 investor Q&A, then-president Satoru Iwata said he expected digital distribution to eventually become the primary way people buy games, though he believed the change would take effect "in 20 years or so."
Nintendo, though, is far from the only publisher placing greater emphasis on their digital distribution. In their latest quarterly financial results, Capcom said they would continue pursuing investments "aimed at the ongoing enhancement of digital sales" to further expand its global business.
The company’s financial results show that more than 93% of their game sales during the quarter came through digital channels; physical copies are left with a much smaller share in comparison. They clarified in their Q&A that "we do not anticipate a significant impact at this time."
EA has described a similar direction in their own financial filings. The publisher told investors they expect players to continue purchasing a higher proportion of games digitally over time, with revenue from digital full-game downloads increasing as sales of physical goods decline.
Their latest quarterly results show US$438 million in revenue from digital "full-game downloads," compared with US$76 million from retail goods.
No publisher has all the answers to what game buying will look like a decade from now. What the latest financial reports do show is that digital distribution is becoming an increasingly important part of the business across much of the industry. Where it ends is something players—and publishers—will just have to wait and see.
Source:
Nintendo | Financial Results Explanatory Material 1st Quarter of Fiscal Year Ending March 2027
Nintendo | Financial Results Explanatory Material Fiscal Year Ended March 2026
Nintendo | Semi-Annual Financial Results Briefing for Fiscal Year Ended March 2010
Capcom | Financial Results Briefing for the Fiscal Year ended March 31, 2025: Q&A Summary
Capcom | 1st Quarter Report Fiscal year ending March 31, 2027
Capcom | Consolidated Financial Results for the Three Months Ended June 30, 2026
EA | ELECTRONIC ARTS INC. FORM 10-Q FOR THE PERIOD ENDED JUNE 30, 2026
