Ubisoft Sees Limited Fallout From Sony’s PlayStation Disc Exit as Digital Consoles Cut Costs

Sony’s decision to discontinue physical discs for all new PlayStation games from January 2028 continues to divide players, developers, and publishers. The official PlayStation announcement confirmed that future releases will instead be sold digitally through the PlayStation Store and participating retailers, while games released before the deadline will remain unaffected.

During Ubisoft’s fiscal 2026 to 2027 first quarter earnings call, an investor asked whether removing physical games and the secondary market could create a demand headwind. Players currently use trade ins and used game sales to finance new purchases, but Ubisoft Chief Financial Officer Frédérick Duguet believes the industry can absorb the transition.

"What we saw on the PC is that it helped to grow the market. There’s also some pressure for the future on the cost of machines, being able to be only digital will help to have a more accessible machine, I would say. As you said, there are plus and minus, but we think it will not disturb too much the industry."
— Quote by: Frédérick Duguet

Duguet’s argument is that removing optical drives could reduce console manufacturing costs and allow platform holders to offer more affordable hardware. He also compared the transition with the growth of PC gaming, where digital distribution became dominant without preventing the overall market from expanding. Ubisoft therefore expects both benefits and disadvantages, but does not anticipate major disruption across the industry.

However, the comparison between PC and PlayStation has limitations. PC players can purchase games through multiple competing storefronts and authorized sellers, while an entirely digital PlayStation ecosystem would leave consumers more dependent on Sony’s platform infrastructure and commercial policies. The disappearance of discs would also reduce resale, lending, independent preservation, and competition between physical retailers, concerns as GTA VI and the accelerating decline of physical games.

The discussion arrived alongside mixed financial results for Ubisoft. First quarter net bookings reached €255.8 million, representing a 9.2% decline compared with the previous year, although the result remained slightly above Ubisoft’s guidance of approximately €250 million. The decline primarily reflected a difficult comparison with the previous quarter, which benefited from significant Assassin’s Creed Shadows bookings.

Assassin’s Creed Black Flag Resynced launched after the quarter ended and has already delivered a major commercial boost. Ubisoft reported 3.5 million copies sold in to retailers and digital platforms during its first 14 days, exceeding the company’s original annual expectations. The remake also achieved the strongest PC performance in franchise history, reaching approximately 105,000 concurrent Steam players.

Despite the strong launch, Duguet declined to revise Ubisoft’s full fiscal year guidance, explaining that the company still has several releases and competitive market conditions ahead.

"For the full fiscal year, while it’s really a great start, it’s still early. It’s a bit early to update the guidance."
— Quote by: Frédérick Duguet

Ubisoft currently expects approximately €370 million in second quarter net bookings. Its confirmed fiscal year lineup includes Rayman Legends Retold on October 1 and Just Dance Decades of Hits on October 13, alongside additional premium games based on established Ubisoft franchises that will be announced later.

Ubisoft has clear financial reasons to support the transition. Digital distribution removes manufacturing, shipping, retail, and inventory expenses while preventing revenue from moving into the used game market. A cheaper digital console could reduce the initial hardware barrier, but there is no guarantee that every production saving will be transferred directly to consumers.

The central issue is therefore not whether digital gaming can grow. PC has already demonstrated that it can. The greater concern is how much pricing power, ownership control, and long term access players surrender when a closed console platform eliminates physical alternatives. Sony may reduce hardware costs, but players could ultimately pay for those savings through weaker retail competition and fewer ownership rights.

Would a cheaper PlayStation console justify losing physical games, resale options, and independent access to your collection?