Sony Group has officially addressed the decision to cease production of physical game discs during its latest earnings report. While acknowledging the backlash and concerns from both players and the industry, the company remains steadfast in its belief that the shift to digital is the inevitable order of the day.

During the earnings conference call on July 31, Sony Group CFO Lin Tao addressed the discontinuation of disc production. CFO Lin Tao stated, "The primary reason for this is that content across the board is being reorganized with a digital-first focus. This is a decision we reached after significant time and careful deliberation, as the digitalization of content—not just for PlayStation—continues to accelerate."

CFO Lin Tao added, "Since a substantial portion of actual content revenue has already shifted to digital, we do not anticipate any negative business impact resulting from the end of physical disc releases," suggesting that the decision poses little risk to their bottom line.

Sony has announced that it will completely halt the production of physical PlayStation discs starting in January 2028. The core driver behind this policy shift is the rapidly accelerating digital transformation occurring across the entire gaming industry.

However, gamers have pointed out that Sony’s decision effectively undermines the notion of game ownership, and some developers have expressed their sadness over the loss of physical media, even while acknowledging the inevitable flow of the times. CFO Lin Tao remarked, "I am aware of the various opinions circulating in the community regarding the end of physical disc releases. Gaming is an entertainment medium loved by so many people, and I will certainly take these opinions to heart."

Finally, when asked if the removal of physical discs would make the console feel more like a PC, CFO Lin Tao replied, "We have determined that the presence or absence of physical discs is not a unique strength in competing with PCs. The true strengths unique to PlayStation lie in providing curated exclusive content, a stable operating environment, and an affordable price point compared to high-end gaming PCs. We believe that we can coexist with PC gaming."