Sony’s decision to phase out physical disc production by January 2028 is fueling concerns over digital ownership and higher costs, but a former Square Enix executive argues that removing physical media will actually lower digital prices by intensifying publisher competition.
As Sony moves forward with plans to end physical game manufacturing for the PlayStation platform, players are bracing for a fully digital ecosystem that many fear will erode consumer ownership rights and drive up costs. The announcement, which confirms that all releases from January 2028 onward will be digital-only—including code-in-the-box options at retail—applies across the board to third-party and first-party titles alike. Sony announced on 1st July that it will end all physical media on PlayStation, a controversial policy that has already sparked fierce backlash online.
Amid widespread industry debate over the shift, one former high-ranking executive offers a contrarian perspective: the elimination of physical media could ultimately make digital games significantly cheaper for consumers.
The Case for Lower Prices Through Direct Publisher Competition
Jacob Navok, who served as director of business development at Square Enix from 2010 to 2015 and is currently the CEO of Genvid, argues that consumer expectations about all-digital pricing are mistaken. According to Navok, current PlayStation Store prices remain artificially tethered to physical retail pricing models. Once physical discs disappear entirely, publishers will compete more directly with each other on the storefront.
Navok maintains that pricing pressure is driven by competition among publishers rather than competition between storefronts. Because publishers set their own prices on digital platforms, storefront battles between Steam and the Epic Games Store primarily influence the revenue cut developers retain rather than the final price paid by players. To illustrate how internal market competition forces prices downward over time, Navok pointed to the pricing trajectory of Final Fantasy 16’s pricing on Valve’s platform as a clear example of natural downward pressure at work.
“The more the PlayStation Store becomes digital only, the greater this trend will accelerate. You will see more sales and dynamic pricing similar to Steam because publishers will compete among themselves to a greater extent.”
Jacob Navok, former Square Enix director of business development, via Twitter/X
Skeptics Point to Rising Costs and Precedents on Console Storefronts
Not everyone shares the optimistic view that an all-digital market will benefit buyers. Consumer advocates and critics note that digital PlayStation games already command a significant premium over physical copies in many cases. Research cited in a Dutch lawsuit against Sony found that digital PlayStation games cost an average of 47% more than their disc-based counterparts.
Retail Shifts and Record Demand for Digital Gift Cards
The transition away from physical media is already reverberating across secondary markets and retail channels. Katarzyna Jakubiec, chief business officer at digital game key marketplace G2A, noted that anticipation surrounding major upcoming releases has triggered unprecedented consumer behavior.
“During the pre-sale period, PlayStation gift card purchases on G2A reached record levels and continue to grow as anticipation for the launch builds, showing that many players are planning their purchases well ahead of release rather than waiting until launch day,” Jakubiec said
Despite the growing embrace of digital convenience, G2A’s leadership emphasizes that a significant segment of the gaming community remains deeply attached to physical media for collection and ownership reasons.
Weighing the Trade-Offs of a Disc-Free Future
As the industry marches toward 2028, players face a complex trade-off. Removing physical manufacturing and shipping overhead eliminates baseline costs, and increased publisher rivalry could theoretically deepen sales events. Yet, the loss of physical media permanently erases the ability to shop around retail competitors for discounts, trade used games, or ensure long-term digital preservation.
