Sony and Xbox Turn Toward Digital-Only as Discs Fade, GTA 6-Style Code Trends

Fresh reporting has pointed to a grim direction for boxed retail gaming: Sony is said to stop making game discs starting in 2028, while Xbox is reportedly moving toward a digital-only future with its Project Helix. Nintendo still supports physical releases for now, but elsewhere it looks like the “disc era” may be shrinking into a thin, zombie-like version of itself—something closer to GTA 6’s model, where the box contains a code rather than the actual game.

Key takeaways

• Sony is reportedly planning to end disc production starting in 2028.
• Xbox is said to be considering a digital-first approach tied to Project Helix.
• Analyst Mat Piscatella expects “codes in a box” and continued special editions for the near future.
• Physical releases would function as storage for vouchers tied to digital game licenses, not true ownership.
• Physical game revenue is down sharply since 2009, but remains a billion-dollar business.
• Some PlayStation media purchases—such as StudioCanal films—can lose access without compensation under licensing rules.

“Codes in a box” could replace discs, and special editions may still exist

During the latest VGC podcast episode, editor-in-chief Andy Robinson explained that he discussed the situation with Circana senior director and industry analyst Mat Piscatella. Piscatella’s take matched the broader industry direction: there will still be codes sealed inside retail packaging, and special editions aren’t going away.

In practice, this is a physical product only in form. The plastic case would effectively hold a redemption voucher for a digital title—an arrangement that’s closer to a non-exclusive license than a piece of software you truly own. That matters because GTA 6 has already sparked backlash around this type of setup, making it difficult to imagine PlayStation receiving a warmer reception if it leans into the same strategy.

Piscatella also framed the shift as a continuation of retail branding rather than an end to “special” releases. Robinson’s discussion noted that while retailers have struggled with physical sales for years, “special editions” have not included actual games for a long time, suggesting the industry is already moving toward the voucher-and-collectibles model.

Physical games may be declining—but the money is still there

Even with long-running complaints about physical sales, the business hasn’t simply vanished. Piscatella revealed that revenue fell from $11.5 billion in 2009 to $1.6 billion in 2026. That’s a dramatic drop, but it still describes a market measured in billions—enough to keep publishers interested in maintaining a retail presence.

Many players who prefer discs may eventually pivot to digital, similar to how PC communities moved earlier. But if Sony is truly heading toward a code-in-box approach, it likely isn’t eager to surrender that $1.6 billion revenue stream. At the same time, the backlash surrounding disc production cuts—and the public anger tied to high-cost consoles and subscription friction, including PS Plus boycotts—suggests that GTA 6-style packaging is unlikely to calm the debate.

Facilities would still need to be repurposed and staff retrained if discs stop being produced, and that kind of operational shift implies the company would not reverse course even if the backlash becomes intense. In other words: even if players push back, the rollout may continue because the infrastructure and planning are already in motion.

On the surface, “codes in boxes” can look like a compromise. You might not be getting discs anymore, but you can still complete a shelf-worthy collection and keep something tangible tied to a purchase. The issue is that the implications go far beyond presentation.

Why code-in-box is more than a packaging change

One major consequence is that codes are typically redeemable only once. That kills the traditional trade-in path that helped power the second-hand market from one console generation to the next. Without that flexibility, physical buying becomes less of a long-term ownership strategy and more of a one-time gateway to a digital license.

Digital libraries come with their own risks as well. If a player account is compromised by hacks, they could lose access to their purchased library. Violating platform terms-of-service can also put an account in jeopardy. And because these are licenses rather than permanent ownership, games can eventually become inaccessible when licensing arrangements expire, potentially wiping out an entire library with no compensation—meaning the “box” doesn’t protect you from the downsides of digital-only access.

So while the code arrives in a physical case, the reality is that the plastic becomes a cover for a digital transaction. The problems that come with licensing-based purchases remain, just with a more collectible wrapper.

PlayStation media purchases can be lost without compensation

The licensing risk isn’t limited to games. If you purchased any of the 500+ movies from StudioCanal on PlayStation, you will soon lose access to them without compensation.