Sony CFO Lin Tao has stated that the company's decision to discontinue PlayStation disc production will not have any negative impact on its business, either currently or in the future. Speaking during an investor Q&A following the company's first-quarter financial results, Tao addressed concerns regarding the move, which is set to conclude disc production for PlayStation games in 2028.
"We are not seeing any impact on our business as of now," Tao said. "Going forward, about the content sales, large part is already digitized. Therefore as a result of the discontinuation of a disc, we don’t see that there will be any negative impact on our business." He did, however, acknowledge that "the users, the players, have attachments, and we have to think about how to respond to those feedbacks."
Despite the backlash from the video game community, which has seen online petitions and widespread social media commentary expressing concerns about game preservation and ownership, Sony does not plan to reverse its decision. The company previously stated that it is following shifting consumer trends, with new games being released digitally only on the PlayStation Store and at retailers.
Data supports this trend, showing an 82% digital download ratio for full game software across PS4 and PS5. According to Mat Piscatella, Senior Director and Video Game Industry Advisor at Circana, only seven PlayStation video games have sold over 100,000 physical units in the U.S. this year, with just two selling more than 10,000 physical units in the week ending July 11.
The financial implications for Sony are significant. For first-party games sold physically, Sony retains only about 65% of the revenue, with retailers taking approximately 30% and manufacturing costs accounting for another 5%. In contrast, digital sales through the PlayStation Store offer a much higher margin. Sony keeps 100% of the revenue from first-party digital sales and a 30% cut from third-party digital titles, such as Call of Duty.