As Sony and Microsoft continue moving toward an all-digital future, one industry analyst believes Nintendo could become the last major console manufacturer to continue supporting physical game releases.
The comments follow Sony’s announcement that it will stop producing physical discs for new PlayStation games beginning in January 2028, while Microsoft is reportedly developing a new Disc-to-Digital system that would allow Xbox players to convert eligible physical games into digital licenses.
Nintendo Expected to Continue Supporting Physical Games
Speaking with VGC, Circana Senior Director and video game industry analyst Mat Piscatella shared his thoughts on the future of physical media.
Piscatella noted that physical game sales have steadily declined for more than two decades, although the launch of the Nintendo Switch 2 has recently provided a temporary boost to retail software sales in the United States.
However, he believes that growth is unlikely to continue long term.
PlayStation and Xbox Are Moving Toward a Digital Future
Piscatella expects Sony’s recent decision to end physical disc production to accelerate the industry’s digital transition.
According to the analyst:
- Physical software sales at retail are expected to continue declining.
- Both PlayStation 6 and Microsoft’s next-generation Project Helix console are likely to launch as digital-only systems.
- Retail stores will gradually stock fewer physical games and more download codes.
If that happens, Nintendo would remain the only major platform holder still manufacturing physical game media.
Nintendo Is Unlikely to Change Course
Despite broader industry trends, Piscatella believes Nintendo is unlikely to alter its strategy simply because Sony and Microsoft have chosen a different direction.
He explained:
“My gut says Nintendo does what Nintendo wants to do, and I don’t see them changing anything in their plans based on what Sony or Microsoft do on anything, really.”
He also suggested Nintendo could continue producing physical cartridges throughout the entire Switch 2 lifecycle.
That said, Piscatella cautioned that nothing is guaranteed, especially given how unpredictable the games industry has become over the past year.
Related Posts
Physical Retail Isn’t Going Away Overnight
While physical game discs and cartridges may become less common, Piscatella doesn’t believe retail shelves will disappear entirely.
Instead, he expects stores to shift toward products such as:
- Digital download codes in boxed packaging
- Collector’s editions
- Merchandise bundles
- Premium physical packages with collectibles
According to Piscatella, these products will likely replace a growing number of traditional physical game releases as the market continues moving toward digital distribution.
For now, Nintendo appears committed to physical cartridges, meaning it could become the final major console manufacturer to keep traditional physical game media alive as PlayStation and Xbox embrace an increasingly digital future.
