Square Enix and CAPCOM have released financial results that highlight a decisive shift in the gaming industry toward digital distribution. The data from fiscal year 2026/3 shows that digital formats now dominate the market for major publishers.
Square Enix sold 21.7 million digital copies versus 4.98 million physical units.
Square Enix sold a total of 26.8 million units during the fiscal year. This total consists of 21.7 million digital copies and 4.98 million physical copies. Digital sales accounted for 81.3 percent of the company's total revenue.
CAPCOM reported an even higher reliance on digital channels. Digital sales rose to 93 percent of the company's total sales. This represents an increase from the 90 percent digital share recorded in the previous year.
This trend aligns with broader hardware changes in the console market. Manufacturers have introduced disc-less models such as the PlayStation 5 Digital Edition and the PlayStation 5 Pro. The Xbox Series S is also a disc-less console, and an all-digital version of the Xbox Series X is in development.
The financial reports confirm that the debate over physical media is largely resolved for these publishers. Digital distribution has become the primary sales channel for both Square Enix and CAPCOM.
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