Ubisoft CEO Weighs In on PlayStation’s Shift Away from Discs: Benefits and Drawbacks, but No Major Industry Disruption Expected
It’s been three weeks since the announcement that PlayStation will be phasing out physical discs by 2028, and the gaming community has been waiting for a significant response from major players. Ubisoft has finally weighed in during a recent earnings call, where its leadership discussed the implications of this shift. They noted that while there are pros and cons to moving away from physical media, it likely won’t cause major disruptions in the industry.
CEO Yves Guillemot shared insights with an analyst regarding the potential market effects of a discless future. “What we saw on the PC is that it helped to grow the market,” he explained. “There’s also some pressure for the future on the cost of machines, and being able to be only digital will help to have a more accessible machine, I would say. As you said, there are pluses and minuses. But we think it will not disturb, too much, the industry.”
Guillemot’s perspective suggests that digital storefronts like Steam have actually boosted the visibility of PC gaming rather than diminished it. Ubisoft operates its own platform, Ubisoft Connect, to sidestep the fees associated with third-party platforms like Valve and Sony, which aligns with Sony’s rationale for moving away from physical discs.
By eliminating the need to share profits with retailers selling physical copies, Sony can retain a larger portion of revenue through its PlayStation Store. For its own titles, such as Marvel’s Wolverine, the company keeps 100% of the earnings from digital sales compared to the smaller share from retail disc sales. Some analysts speculate that rising production costs for the PlayStation 6 are pushing Sony to seek savings in other areas.
However, the downsides for gamers are evident: a lack of ownership, diminished game preservation, and the potential demise of the used game market, which helps keep prices competitive. The thousands of PlayStation fans expressing their frustrations across social media channels might challenge the notion that this transition won’t significantly impact the industry.
As for Ubisoft’s role in this all-digital landscape, it remains uncertain. The publisher is currently navigating a tough restructuring phase, marked by layoffs, budget cuts, and delays in game development. Its quarterly earnings have dropped nearly 10% year-over-year, but the remake of Assassin’s Creed Black Flag: Resynced has already surpassed expectations, selling over 3.5 million copies.
