DF’s John Linneman: “Third Parties Furious Over Sony Killing Discs — Physical Sales Are Most of Their Profit”

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The story

Digital Foundry’s John Linneman has revealed that third-party publishers and developers harbor strong dissatisfaction with Sony’s push toward a “discless” future. According to Linneman, many of these companies earn substantial profits from physical disc sales, with some even generating the majority of their revenue from them. In the thread, users pushed back with claims that “90% of PS sales are digital,” while others shared information noting that sales reports for indie developers can be delayed by up to a month, sparking a divided debate over whether abandoning physical media is really the right direction for the industry.

What people said

1AnonymousSep 1, 2026 11:55
Digital Foundry's John Linneman says publishers and developers are unhappy about Sony pushing toward a discless PlayStation future.
"Most of them were pretty furious. A lot of these companies are actually making significant revenue from physical sales—in some cases it's even the majority… The industry's reaction hasn't been positive."
A Washington Post journalist also said they were glad to see these concerns being confirmed by more people, adding:
2AnonymousSep 1, 2026 11:56
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAH
7AnonymousSep 1, 2026 12:02
Whether they like it or not, the discontinuation isn't changing, so they should just adapt.
8AnonymousSep 1, 2026 12:02
For John—who's been called unable to hide his Sony bias—to go this far, it must be serious.
9AnonymousSep 1, 2026 12:02
That rumor from the other day about a major third party threatening to snub PlayStation is starting to look legit.
10AnonymousSep 1, 2026 12:03
This is just plain false.

PS digital sales are at 90%.

No complaints from publishers or users—that's the reality.
11AnonymousSep 1, 2026 12:04
What are you talking about, it's basically a console full of Chinese-style cash-shop games now 🤷🏾‍♂️
33AnonymousSep 1, 2026 12:16
Re: #11
That's exactly why it's "90% digital"—

The current numbers are massively inflated by demo downloads, reroll spam for gacha games, and free monthly PS Plus titles.
12AnonymousSep 1, 2026 12:04
No matter how high the digital ratio is, physical still accounts for more day-one new release purchases.
Either way, Sony's cut of the profit doesn't change.
14AnonymousSep 1, 2026 12:05
Are they unhappy with Steam too, I wonder?
If they want that, they should go try their luck on Xbox.
72AnonymousSep 1, 2026 12:41
Re: #14
Steam has been digital-first from the start—it's a different situation from PS, where new releases are still mainly sold physically.
15AnonymousSep 1, 2026 12:06
They kept massaging the numbers claiming digital was selling like crazy, and now some out-of-touch exec who doesn't know games is using that to kill discs entirely. lol
16AnonymousSep 1, 2026 12:06
If they don't like it, they could just cut ties with Sony.
17AnonymousSep 1, 2026 12:07
Solo/single-player games still sell a lot as physical copies, you know.
Most digital downloads are from deep-discount sales.
Though I get not wanting to buy something like a competitive multiplayer game physically at this point.
18AnonymousSep 1, 2026 12:07
They were just dumping physical copies onto retailers, so of course that revenue will shrink now.
Just make good games and compete on merit.
25AnonymousSep 1, 2026 12:10
Re: #18
Overseas, there's price protection where publishers cover retailers' losses or allow returns, so retailers aren't actually guaranteeing they'll buy the stock outright.
24AnonymousSep 1, 2026 12:09
DF: "It's actually the majority."
What a traitor.
26AnonymousSep 1, 2026 12:11
Publishers making profit off physical are just a noisy minority—like 5%—so they're getting cut loose.
32AnonymousSep 1, 2026 12:16
It's just the disc drive going away, physical packaging still exists, so it shouldn't matter to publishers.
Though that raises the question of why third parties are still putting out code-in-box releases right now.
44AnonymousSep 1, 2026 12:27
Re: #32
Word spreads fast among gamers that "code-in-box" is basically just a piece of paper, and it gets a negative reaction.
65AnonymousSep 1, 2026 12:37
Even as the number of titles grows, over half of PS Store sales are concentrated in the top 10 titles.
https://pbs.twimg.com/media/GtTz1O3bMAE6FTS.jpg
75AnonymousSep 1, 2026 12:43
I get that physical is easier to manage since you get paid the moment it ships.
But with digital, it's hard to say for sure since you never really know when the profit from a sold copy actually gets paid out to the publisher.
106AnonymousSep 1, 2026 13:11
Re: #75
With PlayStation, you have to actually chase them down or you'll wait a whole month just for the sales report.

CC2's Matsuyama: "Sony is the only one that won't tell us our sales figures, and it's a real problem."
//krsw.5ch.io/test/read.cgi/ghard/1629798354/

www.pushsquare.com/news/2021/07/report_how_playstation_is_failing_indie_developers
・Indie developers had to wait up to a month after launch just to get their sales figures.
PlayStation reports sales transactions at the earliest 30 days after the fact.
77AnonymousSep 1, 2026 12:46
Whether or not it actually sells to consumers, physical copies become money the moment they're shipped to retailers.
Apparently it's still best if everything sells through since it affects the next title, but
in terms of being able to make quick decisions, I think that's a real benefit for publishers.
80AnonymousSep 1, 2026 12:48
Re: #77
In the West, retailers can return unsold copies to the publisher, so I think that "ship and forget" model is really just a Japan thing.
81AnonymousSep 1, 2026 12:49
Re: #77
North America has a returns system, you know.
82AnonymousSep 1, 2026 12:49
Console gamers really are behind the times.
On PC, nobody's out there complaining about not having a physical copy.
91AnonymousSep 1, 2026 12:59
Re: #82
Well, you can't really compare consoles—which have had a physical-media culture for about half a century—to PC, where it's practically never existed.
101AnonymousSep 1, 2026 13:08
Re: #82
Someone who doesn't even know that in Europe, even Capcom still puts out code-in-box releases. Total PC poser.
89AnonymousSep 1, 2026 12:58
Re: #80-81
Sure, returns exist, but basically the money comes in the moment it's shipped to the distributor.
Though I guess you'd have to set aside some funds in reserve for returns.
105AnonymousSep 1, 2026 13:11
Re: #89
That's not actually how the Western returns-based system works.

The initial deal is basically asking the store to give you shelf space—you don't get paid just for placing the product there.
When the store sells a unit, they keep their "cut," and
the remainder gets paid to the publisher each time, as it sells.

So a "return" just means "pulling the product off the shelf"—no money actually changes hands at that point.

It's closer to how download-card sales work in Japan.

There's no cost to stock the cards, and the publisher just gets paid, minus a fee, for whatever actually sells.
93AnonymousSep 1, 2026 13:04
If there had been some kind of push to promote digital sales—like Nintendo's "Katachike" download vouchers, or the DS Station kiosks back in the DS era—and digital sales grew as a result, sure, that'd make sense.
But with none of that happening at all, the idea that PlayStation alone shifted this drastically toward digital? It's obviously not credible.
98AnonymousSep 1, 2026 13:06
Re: #93
If anything, PlayStation doesn't even allow codes to be sold through outside retailers—its digital distribution channels are actually pretty narrow.

Background and Key Points of the Discussion

For background, the PS5 has sold both digital-only and disc-drive models side by side since launch, and this topic is a reaction to the broader industry direction of “further movement toward a discless future.” Where the thread’s opinions split was over how to assess the actual digital sales ratio—against the claim that “90% of PS sales are digital,” some pushed back by pointing out that the figure is inflated by demos and free monthly titles. Another point of contention is the practical difference between physical copies, which get paid out the moment they’re shipped to distributors, versus digital sales, where reporting and payment reportedly lag by up to a month—a difference tied up with North America’s returns system and Europe’s shelf-space contract structures, making it something that can’t be captured by a simple sales comparison. Opinions on Digital Foundry’s neutrality were mixed, and since some of the thread’s posts include baseless speculation, they shouldn’t be taken at face value as fact. In compiling this article, posts containing unfounded bribery accusations against real companies or mockery targeting specific groups were excluded.

※This article is compiled from excerpts and a summary of the 5ch (Hardware/Industry (Geha)) thread “DF’s John: “It’s true that third parties are unhappy about PlayStation discontinuing discs—in reality, physical sales make up the bulk of their profit.”

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