Physical media is hanging by a thread, and all signs point to disc-based games becoming obsolete in the coming months. While dedicated fans are fighting to reverse the trend, Capcom’s latest remarks underscore why a fully digital future appears all but inevitable.
In early July, PlayStation sent shockwaves through the industry by confirming it would cease production of physical games by early 2028, a decision that will affect both exclusive first-party titles and third-party releases alike. Under the new model, the PS Store will become the primary channel for game acquisitions, though retail boxes will still include download codes in lieu of discs.
Since the announcement, players have wondered whether public backlash might compel the Japanese giant to reconsider. That outcome seems unlikely, particularly as one of the industry’s most influential publishers has just brushed off concerns over the format’s phase-out.
Capcom Unfazed by the End of Physical Media
Following a string of commercial and critical hits, Capcom is enjoying one of the strongest periods in its history. This year alone, it set another revenue record and posted impressive software sales driven by high-profile titles such as Pragmata and Resident Evil Requiem.
In its May 2026 financial report, the developer revealed that digital downloads accounted for roughly 93.3% of its game sales during the first quarter of the current fiscal year. That figure is consistent with broader industry trends as the same document showed that 95.2% of all units sold throughout 2025 were digital.
Still, a notable segment of Capcom’s audience continues to purchase physical copies. The question, then, is whether PlayStation’s strategic shift will hurt the publisher’s bottom line. It seems highly unlikely.
During the Q&A portion of its latest earnings call, an investor asked Capcom whether the shrinking physical market would have any mid- to long-term effects on its business. The publisher responded with confidence, making it clear that there’s no fear about the transition to an all-digital ecosystem.
“Approximately 90% of our unit sales are already digital,” Capcom stated. “We do not anticipate any significant impact at this time.”
Capcom is merely the latest major player to weigh in on the format’s decline. Just weeks earlier, Ubisoft CEO Yves Guillemot voiced partial support for phasing out disc releases, noting that the PC market had flourished precisely because of the digital era.
Will PlayStation Reverse Course Following Player Backlash?
Capcom’s nonchalant stance has fueled concerns among physical-media enthusiasts, who worry that disc-based releases may vanish entirely. SEGA has publicly affirmed its support for physical formats yet simultaneously acknowledged that going digital is critical to the industry’s long-term business health.
Sony CFO Lin Tao has reaffirmed that the company intends to stick with its roadmap for eliminating physical media, though she did note that Sony is listening to fan feedback. Meanwhile, online communities are refusing to concede defeat and are already rallying around a fresh boycott campaign.
Electronic Arts, for its part, reported that 81% of its game sales were digital in its latest quarterly filing. Nintendo is an interesting case, however, that suggests disc and cartridge releases still have some breathing room.
The Kyoto-based firm disclosed that digital games comprised only 61.5% of total software sales in the most recent quarter, though that figure marked a slight uptick from the 59.3% recorded in the same period a year earlier.
While industry observers warn that Microsoft and Sony are likely to embrace a partial or fully digital strategy for their next-generation consoles, analysts agree that Nintendo will remain the last hardware manufacturer to continue championing physical media.
What do you think? Do you believe there is still a way to save physical games? Share your thoughts in the comments.
For more news on Capcom, click here.
Netflix Confirms Extended GTA VI Trailer Will Be Significantly Longer Than Fans Anticipate
Take-Two CEO Defends All-Digital GTA VI Release, Saying Physical Discs “Don’t Really Make Sense for the Consumer”
EA’s Sale Likely to Trigger Mass Layoffs and Sales of Studios Like BioWare, Reliable
