Sega's UK and digital boss John Clark predicts that the digital games market will match or even surpass boxed games in terms of revenue by 2015.
Speaking at London Games Conference today, Clark says that although we are seeing a shift from the packaged goods business to digital business, digital needs retail alongside it to grow.
"We are moving from a linear industry," he said. "There are new business models. And every time a new content delivery method appears, a new business model appears.
"The more questions that you ask, the more questions that you get."
He used his own franchises to demonstrate what he has learnt about the boxed sector. Citing the Total War PC franchise, Clark said that retail sales have been erratic, but thanks to DLC the franchise has grown.
But it needed the boxed game in the first place to grow it. He revealed that the boxed versions of Total War still sell more than the digital ones.
"If you don't have a DLC strategy, you probably need it," he told attendees.