Analyst Predicts PlayStation 7 Will Be Major Departure from Previous Consoles in One Major Way

A leading industry analyst predicts Sony may abandon physical game releases by the time the PlayStation 7 launches. While Sony currently offers both digital and disc-based PlayStation 5 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 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 consoles may follow suit, especially considering Xbox's apparent move towards a digital-only future with the Xbox Series S and the upcoming all-digital 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 surpass physical sales year over year. Renowned analyst Mat Piscatella of Circana recently tweeted that PlayStation might maintain physical games for one more generation, implying a potentially all-digital PlayStation 7, similar to the PS5 Digital Edition. Piscatella also forecasts Nintendo retaining physical releases for two more generations, while advising Xbox users to expect a fully digital future.

Analyst Forecasts a Digital-Only Future for PlayStation (Eventually)

Piscatella's insights carry weight, given his role as executive director at the NPD Group, a leading market research firm tracking console, game, and accessory sales in the US. Xbox's internal strategy has long favored digital distribution. Although physical games still represent a significant portion of PlayStation's sales, the balance is steadily shifting towards digital.

Digital game sales offer publishers substantially higher profit margins compared to physical releases, due to reduced costs associated with production, packaging, shipping, and retail markups. 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 seems increasingly likely, though the PlayStation 7's status as a fully digital console remains uncertain. It might be a transitional step before a complete shift to digital-only.