While Sony Interactive Entertainment’s recent decision to completely stop physical disc production for PlayStation by 2026 created a great shock in the gaming world, the real reasons behind this radical breakthrough come to light with financial data.

Recent analysis by Bloomberg’s senior research journalist Jason Schreier clearly shows that Sony generates up to twice as much revenue from digital store sales as from physical retail sales.

Despite the huge reactions and boycott calls from the player communities, the company does not plan to step back due to the huge profit margin brought by digital sales. This new strategy, focused entirely on the PlayStation Store, directly increases the net profit of the company.

Store Commissions Versus Retail Costs

The physical and digital competition in the gaming industry, which has been going on for many years, ends entirely in favor of digital with this harsh decision taken by Sony.

Kantan Games CEO Dr. According to information based on Serkan Toto’s financial analysis reports, when a first-party PlayStation game with a price tag of $ 70 is sold in a box, retail store profits, logistics, packaging and disc production costs are involved.

When all these expenses are deducted, Sony is left with a net balance of approximately $45.50.

However, the situation changes completely when the game is sold digitally via PlayStation Store. Since the ownership of the store belongs directly to Sony, no shares are given to any intermediary institutions and the entire $70 income goes directly to the company’s coffers.

This means roughly 54% more profit per single digital copy sold.

Earnings Double in Third-Party Games

The point where Sony is experiencing the biggest financial boom is hidden in the games developed by third-party studios such as EA, Ubisoft or Activision. When a physical third-party game disc is sold, Sony as the platform owner can only receive a fixed licensing price of around $10.50.

In the digital world, the rules are being rewritten from scratch. When a player purchases a third-party game from the PlayStation Store, Sony cuts a standard 30% platform fee. This means that Sony directly earns 21 dollars from a 70 dollar game.

In other words, the company earns twice as much revenue from digital sales of games produced by others compared to physical disc sales. While the financial statements are so attractive, expecting Sony to make an effort to protect physical media does not match economic realities.

Hidden Harms That Digitalization Brings to Players

Although economic data makes Sony executives happy, on the other side of the coin there are millions of consumers who are about to lose their classic gaming habits.

• The Second Hand Market is Disappearing:Thanks to physical discs, players can sell, trade or share the games they have finished with their friends. In the digital world, a purchased game is locked to a single account forever.

• Library and Archiving in Danger:It becomes impossible to physically preserve the games for future generations and borrow them from public libraries. Digital licenses run the risk of disappearing completely when the servers are closed or the rights ownership agreements expire.

• Price Monopoly Forms:Thanks to the competition between retail stores, boxed games can sometimes be sold at significant discounts. When we switch to completely digital, Sony becomes the sole authority in determining prices and competition disappears.

It is also stated that Sony made a major mistake in managing this transition process. While the company announces that it will end physical discs, it does not take any consumer-friendly steps to soften the reaction of players.