Sony Reveals Digital Dominance as PlayStation Physical Game Sales Hit Record Low

PlayStation Financial Report Shows Physical Games Now Just 3% of Revenue

The shift towards digital distribution has been unfolding for years, but Sony’s latest financial results highlight just how dominant the format has become. In its fiscal year ending March 2025, Sony Interactive Entertainment (SIE) reported total revenue of $31.5 billion USD, with physical game sales accounting for only 3% of that figure.

Two decades ago, the suggestion that discs would one day play such a minor role in gaming would have been met with scepticism. Yet with fast internet access and digital storefronts providing immediate convenience, downloads and live services have now taken centre stage in PlayStation’s business.

Physical Decline Mirrors Wider Industry

The decline in discs is not unique to Sony. Publishers such as Capcom have reported similar downtrends, as boxed copies continue to lose relevance year after year. For PlayStation, physical sales made up 6% of revenue in 2020, meaning the figure has halved in just five years.

Despite this sharp fall, Sony has not abandoned physical media entirely. Reports suggest that the PlayStation 6 may include a detachable disc drive, offering an option for collectors and players reluctant to commit fully to digital ownership.

Add-On Content Takes the Lead

The most significant contributor to PlayStation’s bottom line in 2025 was add-on content, which includes DLC, expansions, and in-game currency. This category made up 29% of total revenue, reflecting the growing importance of live-service models and microtransactions across the industry. Hardware sales, digital game purchases, and network services — primarily PlayStation Plus subscriptions — rounded out the top revenue streams.

Sony’s financials illustrate how its strategy has shifted away from a reliance on one-off boxed sales to ongoing digital engagement. With add-on content and subscriptions driving growth, the company is positioning itself for a future where physical games remain an option, but digital continues to define the market.