Recently, foreign media outlet GameFile conducted an in-depth investigation into the console physical disc supply chain, combining Sony's digitalization plans and Nintendo's new pricing strategy to reveal the costs of physical games and the current state of industry transformation. The complete production process for PS5 and Xbox game discs remains strictly confidential internal industry information. After interviewing various participants in the supply chain, reporters found that no one involved in disc production or certification is authorized to disclose the full manufacturing process, and both Sony and Microsoft have refused to provide any official response regarding disc-related issues.
The process for publishers to release physical versions is cumbersome: they must first submit a release application to the platform and sign inventory underwriting agreements. The game must pass the console's technical certification, confirming disc capacity and packaging standards before mass production can begin. This entire process involves multiple layers of commercial confidentiality clauses, making it difficult for outsiders to obtain complete details.
According to industry estimates, the manufacturing cost of the disc alone accounts for 15% of the game's suggested retail price. Taking a $70 AAA title as an example, the production cost of a single disc exceeds $10. If the game's file size is too large and requires multiple discs, the cost will increase further.
In addition, physical editions incur extra costs such as packaging, global logistics, warehousing losses, and retailer revenue shares. Overall, the total cost of physical distribution is much higher than digital, significantly compressing publishers' profits per physical copy. Digital games, requiring no physical materials or offline channels, allow platforms and publishers to retain higher profits, which is the core reason why major manufacturers are strongly promoting the digital model.
Sony has officially announced that starting January 2028, all new PS games will be released exclusively in digital format, with no more physical discs produced. Only existing stock of previously released titles will remain in circulation, marking a full shift towards the digital store model. This makes Sony the console manufacturer moving fastest towards digitalization. For Switch 2 first-party titles, a differentiated pricing rule has been implemented, with physical cartridges priced $10 higher than digital versions. The official explanation is that physical cartridge production and distribution costs are higher. Although online digital purchases are more cost-effective, offline retailers often offer discounts, meaning physical prices can sometimes match digital ones.
The player community also points out that physical discs have a secondary market attribute, allowing them to be resold after completion to recoup costs. In contrast, digital versions are permanently bound to accounts and cannot be transferred. Each model has its own audience.
In recent years, the share of digital game sales on consoles has been rising year by year, while the overall market size for physical discs continues to decline. However, a large number of collectors still insist on buying physical versions, valuing the collectible nature of the cases and discs. Meanwhile, players seeking cost-effectiveness and convenience prefer digital versions. Industry analysts believe that while physical discs will not disappear completely in the short term, digital distribution will become the industry mainstream in the long run, with physical media gradually becoming a niche collectible category.