Went to GameStop retail the other day and the place was a ghost town. This was in a mall too. Xbox series had only games from like the past year and the rack was pretty much empty. I've been going to game shops since 1995-1996 and I've never seen anything like this. Barely any Xbox One games (which are backwards compat with Series X and many current gen games have last gen releases), barely any used games (Gamestop's bread and butter). Back in the ps2 days there would be an entire rack of used games. It's shocking to see and even more, utterly saddening. I go to gamestop.com and search for a game and not a single Gamestop in a 50 mile radius has it. And this isn't a rare game. One copy of Hitman 1 is available in only one Gamestop in my area. What in the fuck.
I saw data that said for the first time ever digital oversold physical last year. Yet I can't really blame anyone. Even I, a physical diehard and almost absolutist, find digital too tempting these days. If retail doesn't have the games, and it's just easier to order and dl a game from your couch why not do it? Often they're cheaper these days too which didn't always used to be the case.
Maybe online is the way to go for physical these days but damn, Gamestop is a shell of itself. You could (and you would be right) to say this is just desserts for what they did to EB, Software ETC., FuncoLand;etc. but damn.
Is it physical that's dying? Or is this a retail problem? Or is it exclusively Gamestop?
It's kind of everything you mentioned and is a yes and no question. Gamestop is doing worse and they've closed stores/shifted to selling non-gaming stuff over the past few years. The pandemic also killed foot traffic for a lot of retail stores. A lot of malls are also dying. And people are buying more and more online.
AFAIK both Sony and Microsoft would love to kill off physical media and I do think this will finally happen in another console gen or two. But it's hard to say because there's a lot of places where people just don't have the bandwidth available to download large games- there's even still around two million people in the States on dial-up! There are other regions where fast Internet just isn't as feasible due to issues with infrastructure, which is why Southeast Asia gets so many physical copies of games that aren't released elsewhere. (They're released in English because the populations are too low for them to localize games for the native languages.)
From a practical standpoint, I don't see the point in buying physical copies of games for the Xbox and Playstation consoles, since the games full-install and generally are going to get patches and updates. Sure, plenty of games are playable without all these patches, updates, and DLC, but at times these things can be pretty significant. Gone are the days of physical releases being "complete" for the most part. Physical makes more sense on the Switch, since you're playing the games on the carts, but even then there's plenty of updates, patches, and DLC too.
Most of the limited game indie publishers will claim that they are giving you complete games on disc/cart, which is why the releases tend to take longer, but you can't even trust these nowadays since games will get patches after these physical releases or new content will be announced. Sometimes they also just fuck up and manufacture the games unpatched. This just happened with Special Reserve Games' release of Gato Roboto. (They're going to be giving customers fixed cart replacements to make up for it.)
But buying physical can mean lower prices, plus resale value, and some people just like to have the physical product on their shelves or collect. Even though you might have to download updates, it can still be faster to pop a disc in for a reinstall than it can be to download it back to your console. The way download speeds are though nowadays, I'm kinda unsure about that though, lol.
The only platform I trust to not go anywhere in the long-term is PC. Steam in particular. Even when something is delisted, when I own it, I
own it- I can redownload that game on newer hardware later on and not worry about whether or not the next hardware will be backwards-compatible or if they just up and remove something from their digital storefront, even if it's just a demo (see: P.T.).
Thank you for coming to my TED Talk.