Ubisoft CEO Yves Guillemot has offered a perspective on Sony's decision to discontinue physical discs for new PlayStation 5 games starting in January 2028, suggesting potential benefits such as lower console costs.
Guillemot's comments came during a recent investor Q&A, where he noted that the shift to digital-only on PC has contributed to market growth. He posited that eliminating disc drives could help reduce the manufacturing cost of consoles, making them more accessible to consumers. This view contrasts with the significant negative reaction from many players who have voiced concerns online and through petitions regarding the end of physical media.
Sony has stated that the move aligns with evolving consumer preferences, with digital game sales increasingly outpacing physical ones. Sid Shuman, Senior Director of Sony Interactive Entertainment Content Communications, explained that the transition is a natural adaptation to current trends and that new games will be available exclusively on the PlayStation Store and through retailers in digital formats after the January 2028 cutoff. This change does not affect games released before that date.
The decision has ignited considerable backlash from physical media advocates, who cite issues of game ownership and long-term preservation. Reports indicate that Sony anticipated the negative response, with former developers suggesting strict social media guidelines were issued to prevent internal commentary on the controversy.
From a financial standpoint, the shift to digital also benefits Sony. The company retains a larger percentage of revenue from digital sales compared to physical copies, where retailers and manufacturing costs take a significant portion. For example, Sony keeps approximately 65% of the revenue from first-party physical game sales, with about 30% going to retailers and 5% to manufacturing. In contrast, digital sales allow Sony to retain 100% of first-party revenue and a more favorable cut of third-party titles.
Industry analysts largely agree that Sony is unlikely to reverse its decision, despite the outcry. Dr. Serkan Toto, CEO of Kantan Games, noted that even a hypothetical protest of 500,000 PlayStation Plus cancellations would represent only 1% of Sony's user base and subscriber numbers, insufficient to alter the company's strategic direction. The lucrative nature of digital sales is seen as the primary driver behind Sony's move to fully embrace digital distribution.