Former President And CEO Of Sony Interactive Entertainment America Shawn Layden On Handheld Consoles:
"When I was president of PlayStation Japan in 2007, Monster Hunter on PSP saved my life. I was trying to sell PS3s for 60,000 yen, which was impossible. Then Monster Hunter Portable 3rd came out on PSP and allowed me to reach all my targets. Ryozo-san ( Ryozo Tsujimoto, producer of Monster Hunter at Capcom ) and the entire Monster Hunter team at Capcom will always hold a special place in my heart because of this game. They saved my career.
What would I have done differently? I think, and I wouldn't be the first to say it, that we should have made the PSP 2 instead of the Vita. For a PSP 2, we would have just needed one more analog stick. Just one more stick. That's all. And then we ended up making the Vita, which did indeed have two analog sticks.
At that size, I don't think it made a difference, to be honest. It just increased the costs. The touchpad was a strange feature too, and a lot of people didn't understand it. If you're porting a Game Boy game to the Vita, for example, the touchpad is useless. And that also increased the costs.
But ultimately, our biggest strategic mistake was the proprietary memory card. On the PS2, selling 8MB memory cards was more acceptable because nobody had memory cards at home, and it was very profitable. But when the Vita was released, everyone had SD cards. Players all had memory cards, and we forced them to buy another one, which was expensive to boot. These are some of our strategic errors.
Today, and I swear to you, I still take my PSP Go everywhere with me."
My Opinion On PlayStation Discontinuing Physical Games:
First of all, not having physical games is undoubtedly a disadvantage for a lot consumers. With physical copies, you can often find better prices, trade games in once you've finished them, lend them to friends, or sell them second hand. With digital purchases, none of those options exist you are effectively locked into the platform holders ecosystem.
There’s still something special about buying a physical game. Opening the plastic wrapper, taking out the case, and holding the actual game in your hands is a feeling digital simply can’t replicate. It feels more tangible, more personal like you genuinely own something rather than just accessing it. For a lot of people, that physical connection is part of the experience itself. It’s not just about playing the game, but unboxing it, putting the disc in the console, and seeing it start up. That sense of ownership and presence is something digital libraries will never match.
Let's be clear about one thing: when you purchase a digital game or movie, you do not own the game itself. We used to own CDs for music and now this industry is all streaming, you don’t own your music. Companies such as Amazon, Steam, and many others explicitly state that you are purchasing a licence to access the content, not ownership of it, essentially renting it. That's simply the reality, and it should be acknowledged honestly by EVERYONE!
You also have to look at the data. Around 80% of the PlayStation user base no longer buys physical games. In the last fiscal year, 78% of all PlayStation software sales were digital, with the PlayStation Store generating almost $7 billion in revenue during FY25. Whether people like it or not, consumer behaviour has shifted dramatically towards digital purchases, this is a FACT.
Physical game sales have been declining ever since the PS4 generation began. This isn't speculation it's an industry wide trend that has continued for well over a decade. The overwhelming majority of PlayStation users have already chosen digital, that is the PlayStation vast majority users choice.
Another point that hasn't been mentioned enough is Grand Theft Auto VI. The physical edition is expected to require a download rather than containing the full game on the disc, meaning the disc effectively acts as an installation key instead of holding all the game data. Yet there has been very little backlash over this. When you consider that Grand Theft Auto VI is likely to become the biggest entertainment launch of all time, generating billions of dollars and selling tens of millions of copies. If consumers were truly unwilling to accept this purchasing model, this would be the perfect opportunity to make that clear. Instead, the overwhelming majority of people will almost certainly buy the game regardless and already have as it’s the number 1 pre ordered game worldwide, every region on PlayStation Store.
Realistically, very few people are going to refuse to buy Grand Theft Auto VI simply because they can't easily trade it in or sell it afterwards. Most players are buying it because they want to experience one of the most anticipated games ever made. That doesn't mean concerns about ownership, preservation, or consumer rights aren't valid they are. But the reaction to Grand Theft Auto VI suggests that, for many consumers, those concerns are outweighed by the desire to play the game. This highlights the inconsistency in many of these debates. Practices that attract significant criticism in one context often receive far less attention when they involve a highly anticipated release. If the same purchasing model is accepted for one of the biggest games in history, it's difficult to argue that this shift towards digital distribution is unique to any one company. It's an industry wide trend.
That said, PlayStation deserves criticism for how it has communicated these changes. Announcing such a significant shift in a blog post wasn't the right approach, with just a few lines on why, PlayStation has to do better there is no doubt about it. There should also be a system that allows owners of physical games to transfer or upgrade them to digital licences. That would make the transition much fairer for existing customers. PlayStation needs to improve the way it announces these big changes and it must be said as well with its digital library and policies, they should add a lot more features, like gifting that game to a friend, and converting the physical libraries to digital. Refund policy also needs to be changed for all this. Also if you purchase a digital game, it should be forever yours, how this works long term is something PlayStation need to respond to. They’ve received a lot of criticism, let’s see if they respond.
The elephant in the room is PlayStation's upcoming dedicated handheld. A portable console can't use standard 4K Blu-ray discs, so it's obvious Sony is moving towards a unified digital ecosystem. Cross-buy between PS6 and the handheld makes perfect sense and will return, allowing players to access the same digital library across both devices. That also explains why PlayStation is moving away from physical media.
I don't like using "whataboutism," but it's important to look at the wider industry in this case, Xbox's Smart Delivery ecosystem relies heavily on DRM, with their discs effectively acting as installation keys that still require downloads for game data and online verification. Yet this is rarely criticised to the same extent.
The same applies to Steam. Steam's terms make it clear that you are purchasing a licence to access content, and your library depends on account authentication, active internet connection and this is DRM. PC gaming has operated this way for years. Where are these same arguments when it comes to PC? If you're criticising PlayStation for this while ignoring the fact that PC gaming has been almost entirely digital for years, that's a clear double standard.
Then there's Nintendo, its Game Key Cards don't actually contain the full game they simply require players to download the game data before they can play, if that isn’t DRM what is and yet there was nowhere near the same level of outrage. It's another example of the industry moving towards digital while criticism is applied inconsistently.
Finally, the argument that people will "move to PC" because of this doesn't hold up in anyway. PC is an almost entirely digital platform with virtually no physical game market. If your objection is buying digital licences instead of physical discs, moving to PC doesn't solve that problem it simply means switching to another platform that operates in exactly the same way, with the same problems and in some cases far worse.
When you look at the entire market, it's obvious this transition was always coming. Physical media has been declining for years, and digital ecosystems have become the standard across every major platform. Whether people agree with it or not, this is the direction the industry/players has chosen, DATA DOESN'T LIE.
Important updates:
News on physical discs for new games - https://t.co/BzZODXdWGY
News on PlayStation Store on PS3 and PS Vita - https://t.co/ev3mN6wj14
I’m primarily a digital gamer, so this won’t affect me much personally. But it’s still sad to see physical games will disappear. Many players love collecting discs, preserving games, and owning something tangible. I hope Sony reconsiders and keeps physical editions as an option.
State Of Play Facts & Figures:
• All State Of Play Streams Have Now Surpassed A Combined Total Of 94+ Million Views
• There Have Now Been 34 State Of Plays
• State Of Play Streams Are Averaging 2.68 Million Views Per State Of Play
• The Most Viewed State Of Play Remains PlayStation 5 User Experience With A Total Of 13.42 Million Views
• 2025 Has Had The Most State Of Plays 7 In 1 Year
• State Of Play Streams Are Averaging 11.7+ Million Views Per Year Since State Of Play Broadcasts Started In 2019
#StateOfPlay #PlayStation
Sony Interactive Entertainment/PlayStation President And CEO Hideaki Nishino:
"First, we regard hardware as the base for providing the gaming experience, and by offering products such as the PlayStation Portal Remote Player (PS Portal), we aim to provide experiences tailored to users’ play styles beyond the living room, which has traditionally been considered the primary usage environment.
As for pricing, it is not realistic for us to absorb all component cost increases, and we have already implemented some price increases outside Japan. At present, however, sales are proceeding as planned, and we do not believe this has led to a decline in customer demand.
As a principle, we do not intend to sell hardware at significant losses. At the same time, we are carefully monitoring the market and continuing to evaluate our approach. We believe it is important for us to make every effort to ensure that customers fully understand the value we provide in relation to pricing."
Sony Interactive Entertainment/PlayStation President And CEO Hideaki Nishino On Japanese Market:
"We consider the PS5 Digital Edition Japanese-only model a strategic investment. While I won't disclose specific figures, we plan to recoup the investment across our entire business. Although the business situation differs from that in overseas markets, we want you to understand that this is an important and necessary investment for the Japanese market.
We were aware that, due to exchange rate fluctuations, some PS5's had been exported from Japan to overseas markets. Given this situation, we decided that it was crucial to ensure that the PS5 was delivered properly to our Japanese customers. While it might not be the best way to put it, we believe that by making it Japanese-only and limited to Japanese accounts, we were able to set a unique price for Japan.
By offering a more affordable price compared to the multi-language Digital Edition, we hope to further revitalize the important Japanese gaming community and market.
The Japanese market exhibits unique characteristics compared to overseas markets, as evidenced by title sales and rankings. Therefore, we believe that simply applying globally successful approaches to Japan is not the right approach. We want to approach the
Japanese market after thoroughly understanding its culture, aspirations, and preferences, and "State of Play Japan" was implemented for the first time last year as part of this effort."
@Zuby_Tech These prices are wild. A PS5 costs around half of that, and even the most expensive Steam Machine bundle is approaching high-end gaming PC territory.
At $1,428, I’d rather buy a PS5 and spend the rest on games.
@Genki_JPN It’s amazing how much influence Super Mario had on the entire industry. Its sense of freedom and 3D movement inspired countless creators, and it’s fascinating to hear that even Nomura himself drew inspiration from it. A true masterpiece that changed gaming forever.
🩷🩷🩷
@Zuby_Tech I see this as a positive sign. PC publishing may have become so established within Sony’s strategy that it no longer requires special mention. Their continued PC releases matter more than a single line in a report.