A leading industry analyst forecasts Sony's potential abandonment of physical game releases by the PlayStation 7 launch. While the PlayStation 5 offers both digital and physical editions, market trends suggest a growing emphasis on digital-only gaming for future Sony consoles.
The decline of physical game releases is already evident. High-profile titles like Alan Wake 2 and Senua's Saga: Hellblade 2 skipped physical editions at launch. The PC market's complete digital shift foreshadows a similar trend for consoles, particularly with Xbox's apparent move towards a digital-only future, evidenced by the disc-less Xbox Series S and the upcoming all-digital Xbox Series X. This raises questions about PlayStation's long-term commitment to physical media.
Despite PlayStation's continued first-party physical releases, declining year-over-year physical game sales and rising digital spending are undeniable. Circana analyst Mat Piscatella predicts PlayStation might maintain physical releases for one more generation, hinting at a potentially all-digital PlayStation 7, mirroring the PS5 Digital Edition. He further anticipates Nintendo's continued support for physical releases for two more generations, while advising Xbox users to embrace a fully digital future.
Piscatella's insights carry weight, given his position as executive director at the NPD Group, a prominent tracker of console, game, and accessory sales in the US market. Xbox's internal strategy leans heavily towards digital, and although physical sales remain significant for PlayStation, the balance increasingly favors digital.
Digital game sales yield significantly higher profits for publishers compared to physical releases, due to reduced production, packaging, shipping, and retail costs. Sony, despite its apparent support for physical media, actively encourages digital purchases through promotions like Days of Play and loyalty programs such as PlayStation Stars. The eventual disappearance of disc drives in consoles is a distinct possibility. Whether the PlayStation 7 marks the definitive shift to a digital-only era remains uncertain.