End of an era: PlayStation says goodbye to physical discs

• Physical media ruled gaming for generations. Cartridges and discs were mainstays until digital stores allowed people to download games.

What they're saying: PlayStation says all "new games will be available on PlayStation Store and at retailers in digital formats only."

• This won't affect games "already released, or will be releasing, prior to January 2028," the company says.
• Sony says this is a "natural direction" based on "consumer trends as the general preference for digital media significantly outpaces physical discs." (The data from Sony backs this up.)
• "This transition will enable us to align more closely with how most of our community prefers to access and play games today."

Reality check: Eliminating physical discs will lower production costs, too — a small reprieve for an industry rife with layoffs and developmental challenges.

What we're watching: More potential cost-cutting moves may be ahead. Gaming console prices are soaring due to demand for chips and RAM driven by the AI boom.

• It's also unclear whether retailers like GameStop will sell physical boxes containing digital codes or standalone digital codes, like gift cards.

The bottom line: Last week, preorders for "Grand Theft Auto VI" — arguably the biggest game of the year — puzzled gamers by offering a digital edition and a physical copy with a digital code inside, not a disc.

• Now we have an idea why.

Go deeper: CDs are making a comeback thanks to Gen Z