Australian video game sales totaled $1.161bn in 2012, resulting in a 23 per cent contraction compared to 2011.
The report excludes digital sales including DLC, subscriptions, mobile games, and micro-transactions. According to CVG, Australian analyst firm Telsyte predicts $730m worth of digital revenue in 2013.
In light of the report, Australia's Interactive Games and Entertainment Association remains firmly optimistic” about the local industry, despite the year-over-year decline. The organization's CEO Ron Curry claims that it's becoming increasingly difficult to quantify the "value of the industry" due to the digital sector's growth.
"While there is a decline in traditional sales the gaming industry as a whole remains buoyant as people shift towards a 'hybrid' model in their consumption of interactive entertainment,” Curry stated.
Curry also pointed the finger at aging consoles, citing a similar pattern in 2005.