This week has been controversial for gamers, as both Xbox and PlayStation chiefs signaled their intention to move away from physical games. PlayStation confirmed it will cease production of new game discs for PS consoles from January 2028, while reports claim the next-gen Xbox, codenamed Project Helix, will launch without a disc drive. However, Nintendo appears unlikely to follow suit.
Nintendo Stays Its Own Course
Industry insider Mat Piscatella, senior director at tech firm Circana and an industry advisor, told Video Games Chronicle: "Nintendo does what Nintendo wants." He believes the move to digital is "inevitable" but does not expect Nintendo to copy Sony and Microsoft. "Through a combination of consumer preference and manufacturer strategic decisions, we are now seeing Sony announce it will cease production of physical discs in January 2028," Piscatella said.
He added: "This will result in lower sales of video game software at retail, although publishers will still sell code in box or special editions in physical boxes at retail for as long as it makes sense to do so. It is now safe to assume that both PlayStation 6 and Project Helix will be digital-only devices."
Declining Physical Sales
Piscatella noted that sales of new physical video games have fallen every year since the late 2000s. "The US physical market has recently seen the slightest growth because of Nintendo Switch 2, but that won't last," he said. "A lot of players will be justifiably very unhappy with these decisions. But physical media in video games will only last so long as the console manufacturers allow it to, and we're now one step closer to its death. It's a sad day in the world of video games."
Nintendo's Retail Strength
Regarding Nintendo's strategy, Piscatella said: "My gut says Nintendo does what Nintendo wants to do, and I don't see them changing anything in their plans based on what Sony or Microsoft do. Retail has already leaned into Nintendo support more and more over the past few years. Nintendo holds very strong share of physical software and hardware sales since the launch of Switch 2 in particular, so this could continue to increase."
He added: "It's not like boxes on shelves will go away entirely with this change. There will be more codes in box, more merch, maybe more special editions with swag included. But the change should also result in the continued decline in physical game retail spend."
