PlayStation 7: Major Innovation Rumored

A leading industry analyst predicts Sony could abandon physical game releases by the PlayStation 7 launch. While the PlayStation 5 offers both digital and disc versions, 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 editions, mirroring the PC market's all-digital landscape. Xbox's moves, including the disc-less Xbox Series S and the upcoming all-digital Xbox Series X, further fuel speculation about PlayStation's future direction.

Despite PlayStation's continued physical game releases, digital sales significantly outpace physical sales year-over-year. Circana analyst Mat Piscatella suggests PlayStation might maintain physical releases for one more generation, hinting that the PlayStation 7 could be a digital-only console similar to the PS5 Digital Edition. Piscatella also forecasts Nintendo's continued use of physical media for two more generations, while predicting an all-digital future for Xbox.

Analyst Forecasts an End to PlayStation's Physical Game Sales Within a Generation

Piscatella, a key figure at the NPD Group (a leading market research firm), lends weight to his predictions regarding the future of physical game releases from the major console manufacturers. Xbox's strategic focus on digital is well-known, and although physical sales remain substantial for PlayStation, the balance is shifting towards digital.

Digital distribution offers publishers significantly higher profit margins compared to physical releases, where production, packaging, shipping, and retailer fees reduce profits. This explains Sony's ongoing efforts to encourage digital purchases through promotions like Days of Play and loyalty programs such as PlayStation Stars. The eventual phasing out of disc drives in consoles is a real possibility. However, whether the PlayStation 7 marks the definitive shift to a digital-only future remains uncertain.