PlayStation 7: Major Revamp Coming

A leading industry analyst predicts Sony could abandon physical game releases by the PlayStation 7 launch. While the PlayStation 5 offers both disc and digital editions, market trends suggest a potential shift towards a fully digital future for subsequent consoles.

The decline of physical game releases is already evident. Major titles like Alan Wake 2 and Senua's Saga: Hellblade 2 skipped disc versions at launch. The PC market is entirely digital, and Xbox appears to be following suit, having released the disc-less Xbox Series S and announcing a digital-only Xbox Series X. This raises questions about PlayStation's long-term commitment to physical media.

Despite PlayStation's continued first-party physical releases, digital game sales consistently outpace physical sales. Circana analyst Mat Piscatella suggests PlayStation may offer physical games for one more generation, implying the PlayStation 7 could be digital-only, similar to the PS5 Digital Edition. Piscatella also forecasts Nintendo will retain physical releases for two more generations, while Xbox will likely transition fully to digital.

Analyst Forecasts a Generational Shift to Digital-Only PlayStation Games

Piscatella's insights carry weight, given his role as executive director at the NPD Group, a key tracker of US console, game, and accessory sales. Xbox's digital-first strategy is well-known, and although physical games still represent a significant portion of PlayStation's sales, the balance increasingly favors digital.

Digital game sales offer publishers significantly higher profit margins compared to physical releases, due to reduced production, packaging, shipping, and retail costs. While Sony seemingly supports physical media, its promotions (like Days of Play) and loyalty programs (like PlayStation Stars) actively encourage digital purchases. The eventual disappearance of disc drives from consoles is a distinct possibility. Whether the PlayStation 7 marks the definitive shift to a digital-only future remains to be seen.