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

Kyuu said:
BraLoD said:

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?

According to this:

https://www.eurogamer.net/as-playstation-physical-game-sales-drop-its-no-wonder-sony-is-pushing-digital-only-consoles

They made about $953 million from physical in the fiscal year ending March 2025. If physical revenue only takes into account their cut (which is 15%, not 30%), this means people actually paid around $6.3 billion for physical, which is virtually tied with digital (not counting mtx, dlc, subscription etc).

Profit wise, platform holders make twice as much money from a 3rd party digital sale than a physical sale of the same software... and this is what Sony is salivating over. They want every 3rd party dollar sale to give them 30% instead of the 15% from physical. They can't take a larger cut from physical because publishers already give retailers a reported 30% cut in addition to disc/cartridge manufacturing costs.

One definitely can't say its still trending down after the last result is up, much less it's only going to continue to trend down, like you said.

I understand the profit is much higher for digital and that is a major factor for the decision, I simply don't see any kind of justification to get rid of it simply by how well or not physical is performing by itself, purely about it that it's a very big ammount of money being said good bye too, in the proccess of also damaging your brand too.



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twintail said:
Kyuu said:

According to this:

https://www.eurogamer.net/as-playstation-physical-game-sales-drop-its-no-wonder-sony-is-pushing-digital-only-consoles

They made about $953 million from physical in the fiscal year ending March 2025. If physical revenue only takes into account their cut (which is 15%, not 30%), this means people actually paid around $6.3 billion for physical, which is virtually tied with digital (not counting mtx, dlc, subscription etc).

Wouldn't Sony's revenue from digital game sales (nothing else) be $6.5 billion+- (if my calculations are correct)? That would mean that people paid significantly more for digital than they did for physical 

For FY 2024 (ending March 2025), digital revenue is $6.35~ billion per this article. They had digital software revenue at 20% from the total, and the total was $31.77 billion.

31.77 x 0.2 = 6.354



Conina said:
archbrix said:

Wasn't spending in 2025 down in general though?

Remember that the Switch 2 only launched halfway through the year, so not a lot of games yet to spend on and Switch 1 was on its way out. And the Xbox Series wasn't lighting up the charts either with software, so that leaves only the PS5. Whereas in 2008, you had the Wii, X360 and PS3 all tearing it up with software in addition to the DS and the PSP, all selling physical games almost entirely. So it's only natural that there would be a huge difference between those two specific years when you do also factor in that digital is much higher now on top of that.

It would be interesting to see the gradual decline of physical and rise of digital every year from 2008 to 2025 to get a better idea of how spending was distributed over the years.

According to Newzoo, spending was up in 2025 

https://newzoo.com/articles/global-games-market-2025

I guess what I'm thinking of is that console sales themselves were down in 2025, particularly the holiday.  My mistake.



Well that's sad 7 months into the year. I honestly wouldn't be surprised if more physical games are sold in Japan than they are the rest of the world combined. Or at the very least a good chunk of it.



You called down the thunder, now reap the whirlwind

twintail said:

adding ads to games (which appears to come from a patent) and forcing people into a subscription just to play games (which is quite frankly the most laughable suggestion)

You say that like they didn’t literally just paywall the Crunchyroll store behind subscriptions or they aren’t already cramming ads on every digital platform and charging premium prices to skip them.

Again, I’d be surprised if they don’t do this at some point in the PS6’s lifecycle. Or if it’s not through ad paywalls, then a similar form of enshittification will almost-assuredly take its place.




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SONY:
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        ,THEN
   🏴‍☠️STEALING  

 

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BraLoD said:
Kyuu said:

According to this:

https://www.eurogamer.net/as-playstation-physical-game-sales-drop-its-no-wonder-sony-is-pushing-digital-only-consoles

They made about $953 million from physical in the fiscal year ending March 2025. If physical revenue only takes into account their cut (which is 15%, not 30%), this means people actually paid around $6.3 billion for physical, which is virtually tied with digital (not counting mtx, dlc, subscription etc).

Profit wise, platform holders make twice as much money from a 3rd party digital sale than a physical sale of the same software... and this is what Sony is salivating over. They want every 3rd party dollar sale to give them 30% instead of the 15% from physical. They can't take a larger cut from physical because publishers already give retailers a reported 30% cut in addition to disc/cartridge manufacturing costs.

One definitely can't say its still trending down after the last result is up, much less it's only going to continue to trend down, like you said.

I understand the profit is much higher for digital and that is a major factor for the decision, I simply don't see any kind of justification to get rid of it simply by how well or not physical is performing by itself, purely about it that it's a very big ammount of money being said good bye too, in the proccess of also damaging your brand too.

This is essentially an outlier in the data. It doesn't change the projected trend just because it happens once. It needs to happen again before we can move the data from being an outlier to being consistent with a trend. Right now, it isn't, therefore the trend can't be said to have changed.

Whether it's a lot of money is not easy to tell though. No one appears to have any data on what it costs Sony to get that revenue. We also have a lot of other data points that prove that physical is becoming less desirable. If physical is not nearly as important as some in this thread claim it to be, then the damage to the brand is probably not nearly as high either.

Kyuu said:
twintail said:

Wouldn't Sony's revenue from digital game sales (nothing else) be $6.5 billion+- (if my calculations are correct)? That would mean that people paid significantly more for digital than they did for physical 

For FY 2024 (ending March 2025), digital revenue is $6.35~ billion per this article. They had digital software revenue at 20% from the total, and the total was $31.77 billion.

31.77 x 0.2 = 6.354

But you are comparing FULL physical spend vs. revenue only digital spend. That seems pretty meaningless in the grand scale of things, no? Either we're comparing Sony's revenue between the 2 medium, or we're comparing the full consumer spend on both. 

G2ThaUNiT said:

Well that's sad 7 months into the year. I honestly wouldn't be surprised if more physical games are sold in Japan than they are the rest of the world combined. Or at the very least a good chunk of it.

And this is before Take2's whole GTA6 is digital only and in a year with RE9, Pokopia, Crimson Desert. To a lesser extent there's 007, Pragmata, MLB.
KManX89 said:
twintail said:

adding ads to games (which appears to come from a patent) and forcing people into a subscription just to play games (which is quite frankly the most laughable suggestion)

You say that like they didn’t literally just paywall the Crunchyroll store behind subscriptions or they aren’t already cramming ads on every digital platform and charging premium prices to skip them.

Again, I’d be surprised if they don’t do this at some point in the PS6’s lifecycle. Or if it’s not through ad paywalls, then a similar form of enshittification will almost-assuredly take its place.

I mean, we're talking about a video streaming service here. But I understand the concern and underlying point being made. 



@twintail
If (and only if) the physical $953M figure really represents the 15% cut vs the digital $6.35B representing the entire revenue (which in this case equal to consumer spending, or 100%), this means Physical tied Digital in popularity that year. This "$953M" is as misleading as it gets, it more represents "profit before tax" than revenue or consumer spending.



curl-6 said:
BraLoD said:

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.

Yeah shareholders are parasites frankly who don't give a shit if the company is still around in 10 years so long as their stocks go up here and now, the greedy pricks.

Brawndo. It's what plants crave!...



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PS4   - $- We must build a console that’s affordable, charges for services, and pumps out exclusives.

PRO  -%-We must build a console that's VR ready, checkerboard upscales, and sells but a fraction of the money printer.

PS5   - ^ -We must build a console that’s a generational cross product, with RT lighting, and price hiking.

PRO  -&- We must build a console that Super Res upscales and continues the cost increases.

G2ThaUNiT said:

Well that's sad 7 months into the year. I honestly wouldn't be surprised if more physical games are sold in Japan than they are the rest of the world combined. Or at the very least a good chunk of it.

Matt P. is committing a perfect example of the Texas sharpshooter fallacy here. Instead of showing all the data he is zeroing in on the data that tells the story he wants to tell. "Only 7 games sold over 100K in the U.S. over the last 6 months.” That’s fairly manipulative wording with veiled data. He’s picking a lower number and lumping the top 7 selling games into a category quantified by the 7th best selling game.

I have some questions. How much of the games market is the USA? Half? Forty percent? How much will these " barely over 100,000" games sell by the end of the year? How much of this is a result of the USA economy being in the shitter? How many of these games were readily available? Did companies even print enough copies to satisfy the market? Is 2026 even a good year for quality AAA titles on PS5?



Cerebralbore101 said:
G2ThaUNiT said:

Well that's sad 7 months into the year. I honestly wouldn't be surprised if more physical games are sold in Japan than they are the rest of the world combined. Or at the very least a good chunk of it.

Matt P. is committing a perfect example of the Texas sharpshooter fallacy here. Instead of showing all the data he is zeroing in on the data that tells the story he wants to tell. "Only 7 games sold over 100K in the U.S. over the last 6 months.” That’s fairly manipulative wording with veiled data. He’s picking a lower number and lumping the top 7 selling games into a category quantified by the 7th best selling game.

I have some questions. How much of the games market is the USA? Half? Forty percent? How much will these " barely over 100,000" games sell by the end of the year? How much of this is a result of the USA economy being in the shitter? How many of these games were readily available? Did companies even print enough copies to satisfy the market? Is 2026 even a good year for quality AAA titles on PS5?

I love people coming out of the woodwork to make the numbers look bad for physical. Not understanding that all that will do is further convince the people who are already on board with a digital only future and nobody else. Just non gamers looking at some data and trying to do damage control for billion dollar companies. So only 7 Playstation games sold over 100K physical. Not by how much more, just over that amount. Making it look like they didnt sell much more than that. I guess Ghost Of Yotei must have been a huge failure then since 35% of sales were physical. So that game sold like 300K...