In a recent investor Q&A session, Ubisoft boss Yves Guillemot shared his thoughts on Sony’s decision to discontinue discs for new PS5 games from January 2028 onwards. The announcement sparked a huge wave of backlash from fans across social media, livestream comments, and an enormous petition. However, Guillemot surprisingly suggested that some positives could come from this move.
Ubisoft’s Take on the Disc-Less Future
When asked for his thoughts on Sony’s bombshell announcement, Guillemot noted that the industry could benefit from the shift towards digital games. He drew parallels with the PC market, where the growth of digital game sales has helped expand the market. Guillemot believes that the same trend could be seen in the console market, where digital games could make consoles more accessible and affordable.
Guillemot’s comments reflect the fact that the vast majority of game purchases are already digital, following the rise of downloads over the past decade. Sony’s rationale for ditching discs is that it’s simply following consumer trends. As Sid Shuman, Senior Director, Sony Interactive Entertainment Content Communications, stated in a post on PlayStation Blog, new games will be released on PlayStation Store and at retailers in digital formats only, starting from January 2028.
The Financial Benefits of Digital Games
One of the main reasons why Sony is likely to stick with its decision is the financial benefits of digital games. For a first-party PlayStation game like The Last of Us, Sony will only keep around 65% of the money from a physical copy, with around 30% going to the retailer and roughly another 5% on manufacturing costs. Meanwhile, for a physical copy of a third-party game like the Activision-published Call of Duty, Sony will get a licensing fee, likely around 15%. In contrast, for digital sales, Sony keeps 100% of first-party game revenue, and a far better cut from third-party titles.
This financial advantage is a significant factor in Sony’s decision to ditch discs. As Dr. Serkan Toto, CEO of Japanese game industry consultancy firm Kantan Games, pointed out, even if half a million people cancelled their PlayStation Plus subscription in protest, it would be just a drop in the ocean for Sony. With over 120 million active PlayStation users and 50 million subscribers to PlayStation Plus, Sony’s revenue from digital games is likely to be substantial.
The online backlash to Sony’s announcement has been huge, with the most vocal proponents of physical releases leading the charge, citing concerns over game ownership and preservation among the key issues. However, Sony seems unlikely to change course, and it has already begun reassigning staff involved with disc production.
The Wider Industry Impact
Ultimately, Guillemot concluded that Sony’s decision would likely not impact the wider industry too much. He believes that the industry will adapt to the shift towards digital games and that the positives will outweigh the negatives. As the industry continues to evolve, it’s likely that more game developers and publishers will follow Sony’s lead and adopt digital game distribution as the primary method of sales.
In conclusion, while the decision to ditch discs has sparked a huge wave of backlash from fans, it’s clear that Sony’s move is a strategic one. With the financial benefits of digital games and the growing trend towards digital game sales, it’s likely that Sony will stick with its decision and continue to push towards a disc-less future.
