Publishers can still ship boxes with codes: Tao noted that even in a digital-only future, publishers will still be able to ship "empty boxes with codes inside" to retailers in markets like North America, preserving retail shelf presence .
Sony raised PS5 prices twice within 12 months, directly tied to a global memory-chip shortage driven by AI data centers consuming massive amounts of DRAM and NAND supply .
Second price hike (March 2026): Sony announced a $100 increase across all models in the U.S., effective April 2, 2026 . The PS5 Digital went to $599, the Disc version to $649, and the PS5 Pro to $899
.
Sales impact: Sony sold only 1.5 million PS5s in Q4 FY2025, a 46% year-over-year decline, though overall gaming division revenue for the full fiscal year remained stable at ¥4.69 trillion ($29.9 billion) .
Industry-wide effect: Microsoft, Nintendo, Asus, and MSI also raised hardware prices due to the same memory cost pressures. Analysts note the shortage has only tightened as AI demand crowds out consumer chip supply, with Kearney's 2026 market analysis putting full recovery as far out as 2030 .
On July 1, 2026, Sony announced via the PlayStation Blog that starting January 2028, production of physical game discs for all new PlayStation games will cease . New releases will be sold only digitally through the PlayStation Store or as download codes in retail boxes
.
Sony's rationale:
Fan backlash: A loud and sustained wave of criticism erupted across social media, forums, and gaming news comments. Fans raised concerns about game preservation, the ability to resell or lend games, and the loss of ownership control . Kotaku reported that there is "a loud contingent of angry fans" continuing to criticize the company for going all-digital
.
Sony's response to backlash: Tao acknowledged the negative reaction but ruled out any U-turn. She said the company would "cautiously move this forward," reiterating that broader industry digitalization is the driving factor and that Sony is not backing down .
Industry reaction: The Verge called it "Sony killing all physical PlayStation game discs" . CNBC characterized it as a "landmark blow" to the physical gaming market
. TechCrunch and Engadget noted the move effectively signals that the PS6 will launch as a disc-less console
. Microsoft and Xbox have not yet made a similar announcement, but speculation runs that they will likely follow suit
.