According to Goldman Sachs analyst Minami Munakata, Sony’s decision to eliminate physical discs for new games starting January 2028 could enhance the operating margin of its gaming division. The prediction suggests that this shift could increase the margin by 3 percentage points, pushing it above 12%, a significant rise from the 9.9% reported for FY25.
While PlayStation fans are concerned about this transition, hoping that criticism might alter Sony’s plans, the financial rationale for moving to digital-only releases is strong. The abandonment of physical discs is expected to particularly impact profitability in FY28, as reducing costs amid rising component prices is crucial for Sony.
Moreover, the company anticipates achieving approximately 660 billion yen (about $4.3 billion) in operating profit in FY26, benefiting from both cost reductions and the culmination of previous acquisition expenses related to Bungie.
