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

Conina said:
BraLoD said:

Yes, if you refuse the firmware update in the disc you won't be able to play that game, and a firmware update could affect all games potentially.

But now, the bolded part in the reply, wouldn't all the companies involved in the system level update to add ad monetization to their games need to effectively contractually agree with, and be paid for, one by one, otherwise this update would only affect the game in case itself?

I think Sony profting on ads in other people games without them agreeing would be illegal too, lol.

The contractional agreement would be in the firmware agreement and it would be only between Sony (platform holder) and the PS-gamer (end user). The subject of the agreement would be pausing a game (no matter if first party or third party, no matter if physical or digital version) -> showing ads -> unpausing the game. Why should Sony be obligated to invole all third party companies for that?

I doubt that Amazon / Apple / Disney / Netflix involves every content provider for that shit in their streaming services. Or Sony adapts the contracts with the third party developers for using the network services, too.

  

I honestly doubt Sony can unilatelaty alter how a product someone else is the copyright onwer without their direct consent. They can add ads in their own games, in the UI, and in the store. I'm really not sure they could pause Final Fantasy XVI every 10 minutes to push an advertisement without Square Enix consent.

About the Netflix and such situation, I'm more inclined to believe its on the contract prior to any show being signed for any platform, as that is such in something expected in that kind of service. Like we have had for decades for TV shows.

Buy anyway, I really can't say for sure, but to me it doesn't sound like something they can decide by themselves.



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KLXVER said:
Xxain said:

I wish I was active when this announcement was made. There is just to much to absorb in this thread at a quick glance.

But I'm curious; How much longer did you these expect these manufactuers to support physical game release when global digital sales are in the fucking mid 80's?

Well what is the percentage of physical music? Like 98% digital? Dont really see the point of not trying to appeal to a pretty big chunk of your fanbase. Just let companies like Limited Run Games do the physical for you. At least try and phase it out instead of just stopping completely.

Physical gaming likely generates more money than any other physical entertainment service like movies, music and such, and yet it's the one to be axed before them all?

Yeah, it isn't nearly a necessary decision, Playstation has been generating more money in the past 5 years than in the other 25 combined, it's really pretty stupid to give up on all that money and also get people to hate you while you are making more money them you ever did.

The decision is very likely based on many other things like repurposing space in the factory to more lucrative things, having a bigger profit cut of all remaining sales and even having full control of the media.

Physical gaming is not being axed because it doesn't make enough money by itself, at all.



G2ThaUNiT said:
xl-klaudkil said:

As many pointed out,that %ratio of physical vs digital is heavily skewed, it includes

Dlc

10cent digital only games

Ad on packs etc.

If there are 4000games but only 1500are physical+digital and 2500 are digital only yet they also account towards the digital vs physical ratio.

Want to say another thing.

If the ps5 sold 1bill pieces of software, and 20% is physical, thats 200MILLION physical sale's

Make up your own mind if that is enough.

I mentioned in a different thread that actual spending paints a different story.

In the US for 2025, physical video game spending was at $1.5 billion across all platforms. Across PlayStation, Nintendo, and Xbox combined. In comparison, physical game spending peaked in 2008 at $11.6 billion. An 87% drop. And we're at a time where AAA games are costing $70 each, compared to 2008 when they were still $60. That's for the largest gaming market in the world. Europe is in a very similar state as well.

I still am of the belief that if Sony was that desperate to keep profit margins, pass the cost onto the consumer. $20 extra for physical copies. The hardcore crowd will still buy because the important thing is that the option is still there. $1.5 billion, while a drop of water compared to how it used to be, is still a LOT of money being left on the table.

Us is not the world.



 

My youtube gaming page.

http://www.youtube.com/user/klaudkil

xl-klaudkil said:
G2ThaUNiT said:

I mentioned in a different thread that actual spending paints a different story.

In the US for 2025, physical video game spending was at $1.5 billion across all platforms. Across PlayStation, Nintendo, and Xbox combined. In comparison, physical game spending peaked in 2008 at $11.6 billion. An 87% drop. And we're at a time where AAA games are costing $70 each, compared to 2008 when they were still $60. That's for the largest gaming market in the world. Europe is in a very similar state as well.

I still am of the belief that if Sony was that desperate to keep profit margins, pass the cost onto the consumer. $20 extra for physical copies. The hardcore crowd will still buy because the important thing is that the option is still there. $1.5 billion, while a drop of water compared to how it used to be, is still a LOT of money being left on the table.

Us is not the world.

Do you really expect a different trend in most other countries?

If yes, a few examples would be nice.



Conina said:
xl-klaudkil said:

Us is not the world.

Do you really expect a different trend in most other countries?

If yes, a few examples would be nice.

The fact that we are comparing physical games from 2008, like 2-3 years after digital purchases was even a thing on consoles, is a bit much. It was 100% physical in 2004. Oh my! What a drop since then...



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KLXVER said:
Conina said:

Do you really expect a different trend in most other countries?

If yes, a few examples would be nice.

The fact that we are comparing physical games from 2008, like 2-3 years after digital purchases was even a thing on consoles, is a bit much. It was 100% physical in 2004. Oh my! What a drop since then...

You……completely missed the point lol. It had 0 to do with the percentage drop itself and everything to do with how much money is actually being spent on physical games. That’s where the ultimate truth lies.

Physical games now cost upwards of $70 physically. Back in the day it was upwards of $60. For the entirety of 2025, only $1.5 billion was spent on physical games in the US. That figure is across all 3 console makers COMBINED! That’s not good regardless of how anyone tries to spin it. The $11.6 billion figure spent on physical games from 2008 is most likely a lot higher when adjusted for inflation.

I get the argument of percentages being skewed, but let’s not be willfully ignorant on the actual financials. It’s the same trajectory in every major gaming market outside of Japan.

Ultimately, Sony could’ve still done several different things to keep physical games going. From charging an extra $20 premium to just drastically scaling down production, but they chose to do nothing.



You called down the thunder, now reap the whirlwind

G2ThaUNiT said:
KLXVER said:

The fact that we are comparing physical games from 2008, like 2-3 years after digital purchases was even a thing on consoles, is a bit much. It was 100% physical in 2004. Oh my! What a drop since then...

You……completely missed the point lol. It had 0 to do with the percentage drop itself and everything to do with how much money is actually being spent on physical games. That’s where the ultimate truth lies.

Physical games now cost upwards of $70 physically. Back in the day it was upwards of $60. For the entirety of 2025, only $1.5 billion was spent on physical games in the US. That figure is across all 3 console makers COMBINED! That’s not good regardless of how anyone tries to spin it. The $11.6 billion figure spent on physical games from 2008 is most likely a lot higher when adjusted for inflation.

I get the argument of percentages being skewed, but let’s not be willfully ignorant on the actual financials. It’s the same trajectory in every major gaming market outside of Japan.

Ultimately, Sony could’ve still done several different things to keep physical games going. From charging an extra $20 premium to just drastically scaling down production, but they chose to do nothing.

Well if Sony doesnt care about approximately 500 million dollars a year, then thats fair enough I guess.



KLXVER said:
G2ThaUNiT said:

You……completely missed the point lol. It had 0 to do with the percentage drop itself and everything to do with how much money is actually being spent on physical games. That’s where the ultimate truth lies.

Physical games now cost upwards of $70 physically. Back in the day it was upwards of $60. For the entirety of 2025, only $1.5 billion was spent on physical games in the US. That figure is across all 3 console makers COMBINED! That’s not good regardless of how anyone tries to spin it. The $11.6 billion figure spent on physical games from 2008 is most likely a lot higher when adjusted for inflation.

I get the argument of percentages being skewed, but let’s not be willfully ignorant on the actual financials. It’s the same trajectory in every major gaming market outside of Japan.

Ultimately, Sony could’ve still done several different things to keep physical games going. From charging an extra $20 premium to just drastically scaling down production, but they chose to do nothing.

Well if Sony doesnt care about approximately 500 million dollars a year, then thats fair enough I guess.

Yeah that’s unfortunately what they’re betting on. Just enough people giving in to where it’ll make up for those who refuse to buy games on PlayStation anymore.

Jason Schreier broke down that for every $70 physical game Sony sells, they come away with about $45 after retail fees, manufacturing fees, etc. Now, they’ll make the full $70 on first party games and a bigger cut on digital third party games too. Forcing all digital means they hope that enough players won’t care anymore to offset the players that do decide to leave.

And I’m sure Sony doubts there’s going to be a mass exodus to Nintendo just for physical games.



You called down the thunder, now reap the whirlwind

G2ThaUNiT said:
KLXVER said:

Well if Sony doesnt care about approximately 500 million dollars a year, then thats fair enough I guess.

Yeah that’s unfortunately what they’re betting on. Just enough people giving in to where it’ll make up for those who refuse to buy games on PlayStation anymore.

Jason Schreier broke down that for every $70 physical game Sony sells, they come away with about $45 after retail fees, manufacturing fees, etc. Now, they’ll make the full $70 on first party games and a bigger cut on digital third party games too. Forcing all digital means they hope that enough players won’t care anymore to offset the players that do decide to leave.

And I’m sure Sony doubts there’s going to be a mass exodus to Nintendo just for physical games.

So the retailers get nothing from selling the code in a box versions in their stores anymore...?



KLXVER said:
G2ThaUNiT said:

You……completely missed the point lol. It had 0 to do with the percentage drop itself and everything to do with how much money is actually being spent on physical games. That’s where the ultimate truth lies.

Physical games now cost upwards of $70 physically. Back in the day it was upwards of $60. For the entirety of 2025, only $1.5 billion was spent on physical games in the US. That figure is across all 3 console makers COMBINED! That’s not good regardless of how anyone tries to spin it. The $11.6 billion figure spent on physical games from 2008 is most likely a lot higher when adjusted for inflation.

I get the argument of percentages being skewed, but let’s not be willfully ignorant on the actual financials. It’s the same trajectory in every major gaming market outside of Japan.

Ultimately, Sony could’ve still done several different things to keep physical games going. From charging an extra $20 premium to just drastically scaling down production, but they chose to do nothing.

Well if Sony doesnt care about approximately 500 million dollars a year, then thats fair enough I guess.

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.

Physical games is still huge multi billion dollars business, that also involves more than simply selling those games, as they bring people to subscribe to their services, to buy accessories (the disc drive accessory sells very well despite the vast majority of PS5 sales already being the ones that come with it), controllers, expansions, dlc, engage with multiplayer, etc, but getting rid of it is such a control wet dream and a big % increase that shareholders salivate over, that they are willing to even potentially fuck up their entire brand image over it.

Those same shareholders will be the first to leave in a blink if the ship starts to flood, tho, all they care is the biggest short term profits possibly, regardless of what happens with the company or even the industry long term, and appeasing to them against your customer base interest is shooting your own foot hard, but we'll see, Sony clearly thinks it can do whatever and not even bother to address the feedback, so they are either about to be proven right or oh boy, that foot is going to have a hole much bigger than any curative than cover.