Nintendo was initially slow to get on the digital download bandwagon, selling games digitally on their platforms. But it now seems that the company has fully embraced the digital model. According to an analysis from Gamasutra, Nintendo’s annual revenues from digital sales are now reaching $250 million.
However, the regular retail model is still by far Nintendo’s strong point. The $250 million in digital sales accounts for just 11% of Nintendo’s total software sales.
Digital sales are not only easier and more convenient for the consumer, they’re good business for publishers as well: digital sales offer publishers more profit than regular sales, since the retailer doesn’t take their cut (usually $10 of the $60 game price), and the publisher doesn’t have to spend money manufacturing discs etc.
While Nintendo’s recent quarterly reports were disappointing, news of growing digital sales is certainly a bright side. Nintendo barely supported digital downloads with the Wii, but fully embraced it with the Wii U, and the chart below shows the effect:
