Analyst Reveals How Much More Profitable Digital Games Are Than Physical

Analyst Reveals How Much More Profitable Digital Games Are Than Physical

From GameRant (Written by Mohsen Baqery) on | OpenCritic

A gaming consultant and analyst has shed light on what the numbers could look like for companies like PlayStation and Xbox in an all-digital future, suggesting that the shift to a disc-free industry could increase profits by as much as 54%. It is no secret that video game and gaming console production is becoming more expensive and that major companies are looking for ways to improve their profit margins. One recent example was PlayStation's sudden decision to stop printing new video game discs starting in January 2028.

PlayStation's announcement sent shock waves through the gaming community, with many expecting Xbox to follow suit and abandon physical discs in the near future. One of the initial arguments in PlayStation's favor was that more than 80% of gamers were already buying digital games, making the move seem inevitable. However, analysts later challenged that claim, arguing that digital purchases account for the largest share of sales because they include a much broader range of content, such as DLC. They believe PlayStation is abandoning discs only to boost profits.

Sony's controversial decision to stop physical PlayStation game production after January 2028 comes with a notable asterisk allowing some leeway.

According to an...

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