A reputable industry analyst has predicted that Sony may renounce physical game releases by the time the PlayStation 7 launches. The gaming giant already offers an all-digital variant of its current console, the PlayStation 5, alongside the more conventional disc-based model. However, if market trends and analysis are any indication, Sony's focus on digital-only gaming might expand further for subsequent console generations.

The prospect of physical game releases has already been diminishing in recent memory, with major AAA games like Alan Wake 2 and Senua's Saga: Hellblade 2 forgoing disc editions at launch. The PC space is already entirely all-digital, and it appears consoles could be next in line, as Xbox is seemingly shifting to a digital-only future. The company launched the discless Xbox Series S alongside the Series X in 2020, and recently announced an all-digital Xbox Series X that will release later this year. This has led some to question whether Xbox's biggest competitor, PlayStation, sees physical games as a part of its future.

Although PlayStation still pursues physical releases for its first-party games, it's no secret that physical game sales have been falling year-on-year and digital spending has substantially increased. Keeping that in mind, renowned Circana analyst Mat Piscatella recently stated on Twitter that PlayStation may be planning to keep physical games around for another generation, implying that the PlayStation 7 might be an all-digital system much like the PS5 Digital. Piscatella also predicted that Nintendo might retain physical game releases for another two generations, and Xbox users should "get used" to digital-only releases.

Analyst Believes PlayStation Will Only Sell Physical Games For Another Generation

Piscatella is the executive director of the NPD Group, which tracks sales of consoles, games, and accessories across the American market. Therefore, there is some substance to his opinion about the future of physical game releases for the three big console manufacturers. Xbox's internal plans have heavily skewed towards all-digital for some time, and while physical releases still account for a sizable portion of PlayStation's game sales, the ratio has still been tipping in favor of digital titles in recent years.

Publishers profit much more on digital game sales compared to physical, as production, packaging, shipping, and retailer cuts eat into the margins for the latter. Therefore, it comes as no surprise that even though Sony is seemingly a believer in physical media, it has been pushing its customers to spend more on digital games by way of promotions like Days of Play and loyalty programs like PlayStation Stars. It's also quite plausible that at some point in the future, consoles with disc drives might cease to exist. However, it remains to be seen whether the PlayStation 7 will herald the era of digital-only games, or be another precursor.