Could be that he's selling high after stocks went up with the announcement of physical being discontinued, but before something like the announcement of another price hike or low hardware sales brings stock back down.

Yeah, that's kinda what I'm thinking rather than something nefarious.  It seems he knows something or at least anticipates that it may not be this high again going forward.

@Cerebralbore101
Jason Schreier just corroborated the reports I found that we discussed before.

Sony gets:
65%~ for every 1st party game sold physically
100% for every 1st party game sold digitally
15% for every 3rd party game sold physically
30% for every 3rd party game sold digitally

3rd party publishers get 50%~ physically (or lower on Switch 2 Game Cards) vs 70% digitally.

Nintendo makes a lot less than 65% per 1st party physical game because cartridges are too expensive. GKC is one way to address the problem, and the price gap between physical and digital is primarily meant to accelerate digital adoption.

If both Nintendo and Sony hypothetically succeed in transitioning all their players fully to digital, Playstation software could make 10%~ more profit, and Switch 2's software could make 50%-100% more profit. Nintendo stands to gain far more than Sony by going digital, but the risk factor is a lot higher.

Damn! Isnt that ilegal? Like trading with insight knowledge?

OR he sees the storm brewing and thinks"iam outa here" 

No, he sold AFTER they made the announcement. There's no inside trading involved. Typically after a negative news cycle and bad PR the stock goes down. In this instance shares went up 2 days later because the share holders were happy even with the negative PR world wide. He sold when shares were higher which is what you're supposed to do if you want money. Didn't video games ever teach you that?  buy low and sell high? 

Sony financials do state that digital game revenues and units are based on titles 'sold via the Playstation Store'. Network Services is a completely separate number they record.

I'm not sure why digital-only indies and limited physical releases wouldn't be included. That doesn't make sense for a financials document. If anything, the fact that there are more games available digital rather than physical shows that digital is the preferable delivery medium is preferable for devs/ publishers.

Also what are your thoughts on Capcom posting that 80% of their console sales are digital, and that that number increases to 93% when PC is included?

I'm the one that dropped Jason's video here, where he explains all this. 

Digital-Only games and Limited Releases shouldn't be included in a statement about consumer preferences because these two often aren't a matter of choice. It's only a choice to choose between physical and digital when both are readily available. 

A lot of Capcom games like fighting games and Monster Hunter are more live-service than traditional videogames. So buying them physically is pretty pointless unless you wait for the Super Ultra Turbo SF6 Edition released in 2030. Things like CoD, MMOs, Splatoon, Animal Crossing, etc. will naturally have lower physical sales numbers because of the excessive updates and patches. Animal Crossing for example is a completely different game after all the free updates and paid DLC. 

Remember when we got Goty editions that were fully on disk? Pepperidge farm remembers! 

At any rate, whether it's technically legal/ethical or not, the CEO cashing out isn't a great sign.

I suspect the overall equation basically comes down to this; Sony know their audience will shrink significantly from PS5 to PS6, so to make up for the reduction in userbase, they're looking for every way they can to squeeze more money from each individual customer, including axing physical discs to kill the second hand market and cos their margins are higher on digital copies.

No suspicion needed, they outright said so themselves: 

"[...]Tao said, explaining that the company’s goal is to “minimize the impact” of rising memory costs by focusing on “monetizing the installed base” and growing software and network services revenue." 

From https://www.gamespot.com/articles/sony-could-offset-rising-ram-costs-by-monetizing-the-ps5-install-base/1100-6538266/ 

Yep: https://www.gamespot.com/articles/sony-could-offset-rising-ram-costs-by-monetizing-the-ps5-install-base/1100-6538266/