Sony is first console giant to stop making physical games

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Sony will become the first major console maker to stop producing new physical games in a move that marks the end of an era for both the Japanese company and the industry.

In an announcement that drew an angry response from some gamers, Sony said on Wednesday that “physical game disc production of all new games releasing on PlayStation consoles will be discontinued starting January 2028”.

The company said it was responding to consumer trends as the demand for digital media “significantly outpaces physical discs”.

The gaming decision has triggered an online backlash from some PlayStation fans who still want to physically own a game or use the second-hand market to buy cheaper copies.

Multiple unrelated posts by Sony on different social media platforms — including teasers for the new Spider-Man movie — have generated a slew of comments railing against the decision.

Despite the backlash from a vocal minority, analysts said the move was unsurprising given digital sales had accounted for more than 80 per cent of games sold by Sony in recent quarters.

“If gamers and preservationists had bought more physical games, Sony wouldn’t have seen the digital sales ratios that justify this decision,” said Robin Zhu, a games analyst at Bernstein.

“Digital game sales carry essentially 100 per cent incremental margin . . . the cost of the physical package, shipping and retailer margins can be more than 20 per cent of sticker price,” Zhu added.

The move is a first for a legacy console maker as Nintendo and Microsoft, along with Sony, have all maintained an option for gamers to buy and use physical games until now.

Valve’s Steam platform is already fully digital, with PC gaming having left physical games behind long ago, and analysts expect the whole industry will eventually follow suit.

“I was thinking that they might do this when the PlayStation 6 comes around. But Sony pulled the plug during the PlayStation 5 life cycle,” said Serkan Toto, head of consultancy Kantan Games. “You will see that Microsoft will do exactly the same next generation.”

Sony’s move follows Rockstar’s announcement that the hotly anticipated new version of Grand Theft Auto will be digital only. The game, which is expected to provide a huge boost for Sony and the PlayStation, is due to be released in November.

It also comes on the heels of Sony’s decision to cede control of its TV and home audio business, including the Bravia brand, to TCL Electronics through a joint venture in which the Chinese electronics manufacturer will hold a 51 per cent stake.

Sony’s share price has fallen more than 16 per cent this year, even as Japan’s benchmark Nikkei 225 stock index has risen more than 30 per cent to record highs.

Console makers, including Sony and Nintendo, are suffering from the impact of US tariffs and the rise in the cost of memory chips that is eroding profit margins and has resulted in price rises for the PlayStation.

Last month Sony also told users that from September they would no longer be able to access purchased content from StudioCanal and it would be removed from their video libraries due to “content licensing agreements”, underlining concerns about the nature of ownership of digital products.