PlayStation 7: Dramatic Shift Predicted

A leading industry analyst predicts Sony may phase out physical game releases by the PlayStation 7 launch. While the PlayStation 5 offers both digital and disc-based models, 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 physical editions at launch. The PC market is entirely digital, and Xbox appears to be following suit, having released the digital-only Xbox Series S and announcing a digital-only Xbox Series X. This raises questions about PlayStation's future approach to physical media.

Despite continued physical releases for its first-party titles, PlayStation's physical game sales have been declining year-over-year, while digital sales surge. Renowned analyst Mat Piscatella of Circana (formerly NPD Group) tweeted that PlayStation might maintain physical games for one more generation, suggesting the PlayStation 7 could be all-digital, mirroring the PS5 Digital Edition. Piscatella also forecasts Nintendo will retain physical releases for two more generations, while Xbox users should anticipate an all-digital future.

Analyst Forecasts a Shift to Digital-Only for PlayStation

Piscatella's insights carry weight given his position at Circana, a leading market research firm tracking console, game, and accessory sales in the US. Xbox's strategic focus on digital is well-known, and although physical sales remain significant for PlayStation, the balance increasingly favors digital.

Digital game sales are significantly more profitable for publishers due to reduced production, packaging, shipping, and retail costs. While Sony seemingly supports physical media, it actively promotes digital purchases through initiatives like Days of Play and PlayStation Stars. The eventual disappearance of disc drives in consoles is possible, but whether the PlayStation 7 will mark the definitive shift to a digital-only future remains to be seen.