A leading industry analyst predicts Sony may abandon physical game releases by the PlayStation 7's launch. While Sony currently offers both digital and disc-based PlayStation 5 models, market trends suggest a potential shift towards digital-only gaming for future consoles.

The decline of physical game releases is already evident. Major AAA titles, such as Alan Wake 2 and Senua's Saga: Hellblade 2, skipped disc editions at launch. The PC market is entirely digital, and with Xbox seemingly embracing a digital-only future—launching the disc-less Xbox Series S and announcing a digital-only Xbox Series X—the question of PlayStation's commitment to physical media arises.

Although PlayStation continues physical releases for its first-party titles, digital game sales significantly outpace physical sales year after year. Renowned Circana analyst Mat Piscatella tweeted that PlayStation might maintain physical releases for one more generation, hinting at a potentially all-digital PlayStation 7, similar to the PS5 Digital Edition. Piscatella also foresees Nintendo retaining physical releases for two more generations, while advising Xbox users to expect a fully digital future.

Analyst Predicts PlayStation's Physical Game Sales Will Last Only One More Generation

Piscatella, executive director at the NPD Group (a leading market research firm tracking console, game, and accessory sales in the US), offers a credible perspective on the future of physical game distribution for major console manufacturers. Xbox's internal strategy has long favored digital distribution. While physical sales still represent a considerable portion of PlayStation's revenue, the balance is steadily shifting towards digital.

Digital game sales are significantly more profitable for publishers due to lower production, packaging, shipping, and retail costs. Therefore, despite Sony's apparent support for physical media, its promotion of digital games through initiatives like Days of Play and PlayStation Stars is unsurprising. The eventual disappearance of disc drives in consoles is conceivable. Whether the PlayStation 7 marks the definitive shift to a digital-only era or serves as another transitional step remains to be seen.