Sony has announced that it will stop producing physical PlayStation games in 2028, marking what appears to be the end of an era for disc-based console gaming. However, industry advisor Mat Piscatella of Circana argues that the move is less a sudden break than a continuation of trends that have been reshaping the industry for nearly a decade, as physical sales steadily give way to digital. The decision matters because it signals how the major console makers — Sony, Microsoft and Nintendo — are increasingly retreating into distinct niches, and because it hands Sony far greater control over pricing, availability and profit margins.

The economics are central: digital sales earn publishers considerably more per title (roughly $70 on a first-party digital game versus around $45.50 at retail), which helps Sony extract more revenue from a console audience that is ageing, becoming more affluent and slowly shrinking as younger players gravitate towards cheaper mobile and PC games. Sony has moved quickly, already repurposing its last disc-handling factory and retraining its 300 staff to make optical microlenses. An all-digital model also removes trade-ins and resale, leaving buyers to pay full price or wait for discounts. Nintendo, which leads in physical sales and courts younger audiences, is expected to keep producing physical media throughout the Switch 2's lifecycle into the 2030s, though many titles now use game key cards rather than true cartridges.