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At the time of writing, Sony confirmed that by 2028 all new PlayStation games will be sold exclusively in digital format, bringing an end to more than 30 years of physical game releases that began with the original PlayStation. Unsurprisingly, this announcement has been met with strong criticism from PlayStation fans because it represents a massive shift that could directly impact hundreds of video game retailers around the world.
But why did Sony make this decision? What is the reasoning behind eliminating one of the most iconic formats in the history of the world's best-selling game console brand? That is exactly what I will cover in this article.
Demand for Physical Games Has Declined
While this may seem obvious, many people do not realize how much the digital era has changed the way games are purchased. Years ago, online game stores were not the primary place to buy games. Physical copies were the standard.
As digital storefronts became more popular, demand for disc-based games continued to decline. Many iconic video game retailers have closed their doors, and hundreds of stores along with thousands of jobs have disappeared or shifted to other industries as a result of these changes.
You might wonder why PC gamers do not have the option of buying games on disc and rarely complain about it. The difference is that a gaming PC serves many purposes beyond gaming. If the next PlayStation ends up costing more than $1,000 because of rising hardware prices, there may be fewer reasons to stay in the PlayStation ecosystem when you could build a PC that offers much more than just gaming.
Sony also no longer has as many strong exclusive titles as it once did, so completely removing physical discs seems like one of the worst decisions the company has made. It would also directly affect hundreds of video game stores that are still trying to survive despite the steady decline of physical game sales.
Digital Games Generate Higher Profits for Sony and Developers
To put things into perspective, a $70 game like Assassin's Creed Shadows may leave Ubisoft with roughly $42 from a physical sale after accounting for retailer margins, manufacturing, and distribution costs. With a digital sale, Sony receives around $21 through its standard 30% platform fee, while Ubisoft keeps about $49 because many of the costs associated with physical copies are eliminated.
This means Sony earns significantly more money when a game is purchased through the PlayStation Store than when the same game is sold as a physical copy. As a result, the company would secure roughly 30% of every game sold through its digital storefront, with no retail middlemen and no ability for players to lend or resell physical copies.
At this point, only pressure from the gaming community could convince Sony to reverse this decision. Hopefully the company reconsiders because otherwise this could mark the beginning of the end for physical games.
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My name is Joel! I love to read, I go to university like most people my age.
In my free time I usually train boxing, I love music, I also know how to play the guitar and the harmonica.