Analyst Says Sony Killing Physical PS5 Games “Dooms” Brick-And-Mortar Stores
Overview & Key Takeaways
Sony's decision to kill physical PlayStation games in January 2028 has, understandably, gotten under the skin of just about everyone. And while Disgea's creator says the company should just stop making consoles altogether if there won't be any more physical games, an analyst is sounding the alarm on how Sony's decision could be the death knell for brick-and-mortar gaming stores in the future.
Michael Pachter, managing director of strategic planning at the LA-based financial services firm Wedbush Securities, spoke to CNBC on July 21 about the possible ramifications of Sony's choice. He said that the company's decision could save Sony some money, but it ultimately feels anti-consumer. Pachter then emphasized just how important the used-gaming market is for all consumers.
"Realistically, at least 1/3 of games have been sold historically as used, and the games that were sold used also provided currency to the gamer who traded them in as cash to pay for new games," he said. "Brick and mortar game retail is doomed."
This is in stark contrast to what GameStop CEO Ryan Cohen said on July 17. As the top man of one of the largest gaming retailers in the world, Cohen expressed how "totally irrelevant" physical games are to the company's overall business. It is true that software sales only make up 12% of GameStop's revenue, with collectibles (like Pokemon cards) accounting for 41.8% and hardware and accessories totaling nearly 40%. Gaming sales, new or used, are an ever-shrinking portion of GameStop's business, and there is data backing up just how little physical PlayStation 5 game sales contribute to Sony's business.
But the numbers haven't stopped hundreds of thousands of people from signing a petition urging Sony to change its mind and continue producing discs.
The internet also had thoughts on Sony putting physical games in a coffin, with many lampooning how play apparently does have limits. (This is a riff on Sony's common slogan: "Play has no limits.")
Sony’s decision to kill physical PlayStation games in January 2028 has, understandably, gotten under the skin of just about everyone. And while Disgea’s creator says the company should just stop making consoles altogether if there won’t be any more physical games, an analyst is sounding the alarm on how Sony’s decision could be the death knell for brick-and-mortar gaming stores in the future.
Michael Pachter, managing director of strategic planning at the LA-based financial services firm Wedbush Securities, spoke to CNBC on July 21 about the possible ramifications of Sony’s choice. He said that the company’s decision could save Sony some money, but it ultimately feels anti-consumer. Pachter then emphasized just how important the used-gaming market is for all consumers.
“Realistically, at least 1/3 of games have been sold historically as used, and the games that were sold used also provided currency to the gamer who traded them in as cash to pay for new games,” he said. “Brick and mortar game retail is doomed.”
This is in stark contrast to what GameStop CEO Ryan Cohen said on July 17. As the top man of one of the largest gaming retailers in the world, Cohen expressed how “totally irrelevant” physical games are to the company’s overall business. It is true that software sales only make up 12% of GameStop’s revenue, with collectibles (like Pokemon cards) accounting for 41.8% and hardware and accessories totaling nearly 40%. Gaming sales, new or used, are an ever-shrinking portion of GameStop’s business, and there is data backing up just how little physical PlayStation 5 game sales contribute to Sony’s business.
But the numbers haven’t stopped hundreds of thousands of people from signing a petition urging Sony to change its mind and continue producing discs.
The internet also had thoughts on Sony putting physical games in a coffin, with many lampooning how play apparently does have limits. (This is a riff on Sony’s common slogan: “Play has no limits.”)
