Square Enix and CAPCOM Just Killed the Physical Game Debate, as Digital Sales Crush 81% and 93% Splits

May 14, 2026 at 05:23am EDT
A split-screen image shows Cloud Strife from 'Final Fantasy VII' wielding his iconic sword on the left, and Leon S. Kennedy from 'Resident Evil' standing in a tactical outfit on the right.

A few years after the launch of digital storefronts like the PlayStation Store and the Nintendo eShop, it seemed like digital releases would never replace physical game releases, as gamers preferred to purchase retail releases of their favorite games. While it looked like this wouldn't be changing in the foreseeable future, we are reaching a point where physical releases could indeed be dying, as major publishers like Square Enix and CAPCOM recently reported that the vast majority of their sales are digital.

Earlier today, as reported on X by Genki, the Final Fantasy and Dragon Quest series publisher posted its latest financial results for FY26/3, confirming that the 26.8 million units sold last year are split between 21.7 million digital units and 4.98 million physical units. Digital sales made up an overwhelming 81.3% of the total sales.

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Similarly, in its financial report, which also highlighted how Dragon's Dogma 2 is not going to be the final entry in the series, CAPCOM confirmed a similar split, as its digital sales rose to 93% of total sales, up from 90% last year.

Although die-hard physical collectors remain vocal about their preference, the writing has been on the wall for a long time. With the PlayStation 5 Digital Edition, the PlayStation 5 Pro, and the Xbox Series S launching without a disc drive, and Microsoft later launching an all-digital Xbox Series X model, it was already clear from the start of the generation how the vast majority of players prefer the convenience of digital releases. Nintendo and its fans continue to be outliers, with publishers such as CD Projekt Red trying to offer proper retail releases in place of Game Key Cards, but they seem to have become the exception rather than the rule.

With the sales split reported by Square Enix and CAPCOM being so high, the next console generation is poised to take this into account. While we have no idea if the PlayStation 6 will launch with a disc drive, although chances are high it won't, to keep costs down as much as possible, we recently heard rumblings that Xbox Project Helix won't, with a rumored disc-to-digital program that would still allow gamers to play their physical games in some form.

About the author: Francesco De Meo has been covering video games and technology since 2012, starting his career at small outlets like Gamersyndrome and GeekSnack. After joining Wccftech gaming section in 2015, he quickly expanded his video gaming coverage with in-depth reporting, interviews with iconic industry figures such as Grasshopper Manufacture founder and No More Heroes creator Goichi "Suda51" Suda, Resident Evil series creator Shinji Mikami, Team NINJA's president and Nioh series director Fumihiko Yasuda, and Silent Hill creator Keiichiro Toyama, reviews and on-the-ground coverage of major industry events such as Gamescom and E3. When he's not reporting or reviewing, Francesco can be found playing the genres he loves most, spending time with his six cats, reading, writing music, playing guitar and drumming for his progressive rock band.

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