‘Sony Knows a $1,000 PS6 Won’t Sell as Much’: Analyst on Manufacturer’s Plan to Maximise Revenue
Niko Partners director Daniel Ahmad has published a fact-based analysis explaining the reasoning behind Sony's decision to stop manufacturing physical PlayStation game discs, cutting through the emotional backlash from fans. He compares the move to Apple removing the CD drive from its laptops in 2008, arguing that although complaints were loud at the time, the shift proved inevitable and is now barely remembered. The analysis matters because it frames the disc decision as part of a wider strategy by Sony to maximise revenue per user as the console market changes.
Ahmad notes that full-game digital sales on PlayStation have risen from under 10% before the PS4 to around 80% today, with Xbox as high as 90%, and he disputes an out-of-date Insomniac Games leak by pointing out it reflects sell-in rather than sell-through figures and that Sony counts console bundles containing digital codes as retail sales. He acknowledges that 70 million PS5 game discs were still sold in the past year, but says Sony earns significantly less from physical games and is adapting to an environment in which the PS6 could launch at up to $1,000, shifting focus towards hardcore gamers rather than a mass market. Ahmad believes Sony is unlikely to reverse course but may clarify certain aspects, and both he and the article's author argue that the firm's poor communication — particularly its silence on how existing discs will be supported — has fuelled much of the anger.
In short
- Analyst says Sony ending discs is inevitable, revenue-driven, like Apple dropping CD drives.
- Digital now makes up around 80% of PlayStation full-game sales.
- PS6 could launch at up to $1,000, targeting hardcore gamers.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Sony's digital-only strategy reflects genuine business logic and market reality. Digital games comprise 80% of PlayStation sales today compared to under 10% a generation ago, demonstrating clear consumer preference and substantial profit margins—digital distribution eliminates manufacturing and logistics costs whilst preventing revenue loss from second-hand sales. This shift mirrors inevitable technological transitions across consumer electronics, from CDs to streaming, that initially provoke anxiety but ultimately prove more efficient. As internet penetration and speeds continue to improve globally, digital-only distribution becomes increasingly rational both economically and environmentally.
The case against
Digital-only distribution concentrates dangerous power with platform holders who can remotely revoke access, shut down servers, or modify games without consumer consent—consumers no longer own purchases but merely rent them. Physical media supports consumer rights like resale and lending, sustains used-game markets benefiting consumers, and remains essential for those with unreliable or limited internet access, particularly acute in rural areas and developing nations. Digital infrastructure demands massive energy consumption from data centres, potentially creating greater environmental impact than efficient physical distribution, whilst digital-only approaches eliminate preservation; games reliant on online servers vanish entirely when companies cease support, whereas physical media endures.
Explained simply
Sony has announced plans to stop manufacturing physical game discs for future PlayStation consoles, including the PS6. This represents a fundamental shift in how the gaming console will work, moving away from physical media that people have owned and traded for decades. The decision has sparked considerable backlash from fans who fear losing ownership rights and the ability to resell or lend games they have purchased.
Daniel Ahmad, an analyst at Niko Partners, has published analysis explaining the business reasoning behind Sony's shift. He points out that digital game sales on PlayStation have grown from under 10 per cent before the PS4 to around 80 per cent today, with Xbox even higher at 90 per cent, whilst Sony earns significantly less from physical games because retailers take a substantial cut. This change reflects a fundamental transformation in the gaming industry, driven by consumer behaviour and profit margins.
Ahmad notes that Sony is adapting to a future where PlayStation consoles may cost up to $1,000 and where the company prioritises revenue from hardcore gamers over mass-market consumers. However, much of the consumer anger stems not from the decision itself but from Sony's poor communication, particularly its silence about how people will be able to use existing physical game discs on new consoles. Critics argue that clearer explanation of the company's strategy could have substantially reduced the backlash.
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