ITS OVER Sony Interactive Entertainment to end physical game disc production in January 2028

[BraLoD]

twintail said:

BraLoD said:

Pretty sure any company in the world you ask "would do like to do a $700M extra a year in the US alone?" (I would not divide that 1.5B in a perfect 3 way as Xbox is likely a much lower contributor).

Every single one would answer "yes, obviously" and the fact Sony is going for a "no" 100% means its not about the physical games at all, it's about the fact that if they succeed on getting rid of it while still keeping the vast majority of customers they expect to make a whole lot more than they'll lose with it and the people leaving.

And that's just the US, it surely makes so much more worldwide. Europe must have a decently better ratio for physical too for example.

They make around $750M worldwide, if I am not wrong. If we assume $700M in the US alone ( and I know you're just guessing no worries), that means physical would be essentially dead everywhere else.

But no, I don't think the answer would be "yes, obviously" because this only accounts for revenue. It's not profit. I don't believe we have any numbers whatsoever on the profit margins of physical sales. It also doesn't account for future trends where that number is only going to continue dropping (with or without Sony's announcement). 

And physical sales revenue only accounts for 11% when compared against digital sales revenue. If you added digital add on content, physical falls to under 5% based on my calculations.

Considering that $750M is accurate and for a year, it is only considering their 30% cut for third party, right? The $1.5B is for the US is for 100% of it, so not the same to compare it and say it's dead everywhere else, as it clearly isn't.

The trend was actually up for FY 2025 for physical games in total value, Q1 to Q3 had all made more money on physical games than FY 2024 in a row. Where is the future trend of it to continue dropping, as per Sony on finalcials reports?