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PlayStation 7: Analyst Forecasts Radical Shift in Console Design

by Lucy Dec 19,2024

PlayStation 7: Analyst Forecasts Radical Shift in Console Design

A leading industry analyst predicts Sony may abandon physical game releases by the PlayStation 7 launch. While the PlayStation 5 offers both digital and disc versions, market trends suggest Sony's shift towards digital-only gaming could accelerate.

The decline of physical game releases is evident. Major titles like Alan Wake 2 and Senua's Saga: Hellblade 2 skipped physical editions. The PC market is entirely digital, and Xbox's move towards a digital-only future, with the Xbox Series S and the upcoming all-digital Xbox Series X, fuels speculation about PlayStation's strategy.

Although PlayStation continues physical releases for its first-party titles, digital game sales consistently surpass physical sales. Circana analyst Mat Piscatella suggests PlayStation may maintain physical releases for one more generation, implying the PlayStation 7 could be digital-only, mirroring the PS5 Digital Edition. Piscatella also forecasts Nintendo will retain physical games for two more generations, while Xbox users should expect a fully digital future.

Analyst Forecasts End of Physical PlayStation Games After Next Generation

Piscatella, executive director at the NPD Group (a leading market research firm), provides insightful commentary on the future of physical game releases for major console manufacturers. Xbox's digital-first approach is well-known, and while PlayStation still benefits from substantial physical sales, digital's dominance is growing.

Digital game sales offer significantly higher profit margins for publishers compared to physical releases, due to reduced production, packaging, shipping, and retail costs. Therefore, despite Sony's apparent commitment to physical media, its promotions (like Days of Play) and loyalty programs (like PlayStation Stars) encourage digital purchases. The eventual disappearance of disc drives in consoles is plausible, but whether the PlayStation 7 marks the definitive shift to digital-only remains to be seen.