Sony will abandon physical discs for new games starting in January 2028, and analysts believe this will allow PlayStation to significantly increase its operating margin.
PlayStation fans hope that player criticism will force Sony to change its plans. However, the company has a strong financial argument in favor of digital releases.
According to Nikkei Asia, Goldman Sachs analyst Minami Munakata believes that abandoning disc production could increase the operating margin of Sony's gaming division by 3 percentage points in fiscal year 2028. In FY25, it was 9.9%. Thus, the figure could exceed 12% – the level seen during the pandemic.
Sony is currently facing rising costs, including component costs, so cost reduction can significantly impact profits. The effect of abandoning discs should be particularly evident in FY28, which will run from April 1, 2028, to March 31, 2029.
Sony expects 660 billion yen (about $4.3 billion) in operating profit in FY26, partly due to cost reductions and the completion of some acquisition costs for Bungie.