Digital game sales in the UK grew to £2.18 billion in 2016 and generated almost three times as much in sales as physical games, according to the Entertainment Retailers Association.
This is an increase of 12.1% over 2015's £1.95 billion sales. Physical sales meanwhile dropped from £927 million to £776 million, a decrease of 16.4% year-on-year.
Digital sales therefore take up a 74% share of the market. The ERA did not break out mobile sales within these figures.
The benefits of innovation
"The music, video and games industries were understandably nervous about the advent of new digital services, but these figures provide resounding evidence of the benefits of our members' investment in innovation," said RA CEO Kim Bayley.
"To have added over £1bn in new revenues in just four years is an incredible achievement. To put it another way, take away today's digital services and the entertainment market would be barely a third the size it is today."