Sony's fiscal year 2025 report, covering the period from April 2024 through March 2025, has been released. The report highlights a sharp decline in revenue from physical console game discs.

According to the report, physical first-party game sales accounted for a mere 3% of Sony's gaming revenue in fiscal year 2024. Digital sales lead the pack at 49%—split between 20% for digital editions and 29% for additional content—while hardware sits at 24%, network services like PSN at 14%, and the remaining 10% are categorized as other.

What is notable is the steady decline of physical media revenue. It is worth noting that this figure only covers first-party titles, as third-party physical sales are calculated as royalties and are not included in this specific category. Conversely, digital revenue figures aggregate both first and third-party sales.

The share of physical sales started at 6% in fiscal 2019, followed by 5% in 2020, 2021, and 2022. It then dipped to 4% in 2023 and further to 3% in 2024, effectively halving its share. This indicates that the proportion of physical media is shrinking, independent of the overall growth of Sony's gaming division.

According to the report, Sony views software titles, additional content, and network services as the primary sources of recurring and sustainable revenue for 2025. Sony's recent pivot toward live-service models is also based on this trend. Furthermore, it was noted that as the PS5 enters the latter half of its lifecycle, hardware sales are expected to decline further.