A leading industry analyst forecasts a potential shift for Sony, suggesting the PlayStation 7 could mark the end of physical game releases. While Sony currently offers both digital and disc-based PlayStation 5 models, emerging market trends and analysis indicate a possible future focus on digital-only gaming for subsequent consoles.

The decline of physical game releases is already evident. High-profile AAA titles, such as Alan Wake 2 and Senua's Saga: Hellblade 2, have omitted disc editions at launch. The PC market is exclusively digital, and consoles may follow suit, with Xbox seemingly transitioning to a digital-only model. The launch of the disc-less Xbox Series S and the upcoming all-digital Xbox Series X reinforces this trend, prompting speculation about PlayStation's future approach.

Despite PlayStation's continued support for physical releases of its first-party titles, the year-on-year decline in physical game sales and the surge in digital spending are undeniable. Renowned Circana analyst Mat Piscatella recently tweeted that PlayStation might maintain physical game releases for one more generation, hinting at a potential all-digital PlayStation 7, mirroring the PS5 Digital Edition. Piscatella also predicted continued physical releases for Nintendo for two more generations, while advising Xbox users to expect a complete shift to digital.

Analyst Predicts PlayStation's Physical Game Future

Piscatella's insights carry weight, given his role as executive director of the NPD Group, a leading market research firm tracking console, game, and accessory sales in the US. Xbox's internal strategies have long favored digital-only distribution. Although physical sales remain significant for PlayStation, the balance increasingly leans towards digital.

Digital game sales are considerably more profitable for publishers due to reduced costs associated with manufacturing, packaging, shipping, and retailer margins. Therefore, despite Sony's apparent commitment to physical media, its promotional efforts, such as Days of Play and PlayStation Stars, encourage digital spending. The eventual disappearance of disc drives in consoles is plausible, but whether the PlayStation 7 will be a fully digital console remains uncertain. It could be another stepping stone towards an all-digital future.