Sales data indicates bleak future for physical games in US

Q: What does Circana's data say about the year-by-year decline in US physical game revenue between 2009 and 2026?

Circana's data shows US physical game revenue peaked at an estimated $11.5 billion in 2009 and fell to $1.6 billion by 2026. That decline represents a compound annual growth rate of negative 10.36% across 2009-2026.

Q: How does Sony's reported negative CAGR for physical game sales from FY17 to FY25 compare with Circana's longer-term rate?

Sony's reported negative CAGR of -9.26% from FY17 to FY25 is slightly less steep than Circana's longer-term rate of -10.36% (2009 to 2026). The difference is about 1.10 percentage points, with Sony's decline being marginally smaller.

Q: How might supply chain disruptions like COVID and RAM chip shortages have influenced Sony's decision to cut physical discs?

The article says Sony experienced irreparable supply chain disruption from COVID in 2020 and recent RAM chip shortages, and those disruptions prompted the company to try to smooth out risk and protect profits against uncertainty. As part of that risk reduction, Sony is pursuing permanent cost reductions in production, and cutting physical discs is presented as a way to future-proof profits because physical games cost more to produce and make less money than digital.

Q: What reasons does the article give for digital game distribution being more profitable than physical discs for Sony?

The article says digital distribution is more profitable because physical discs do not make as much money and "do not work as well" as digital. Sony is seeking to protect and future-proof profits against uncertainty and risk caused by supply chain disruptions like COVID, current RAM chip shortages, and tariffs, and moving away from discs offers a permanent production cost reduction. The sales data showing a long-term decline in physical revenue and far fewer high-selling physical titles also supports the move toward digital.

Circana's sales data shows that discs have been on a decline in the US for years now, adding more weight to Sony's decision to cut physical game discs.

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Derek Strickland

Senior Gaming Editor

Published Jul 21, 2026 9:09 PM CDT

1 minute & 30 seconds read time

TL;DR: Circana data shows US physical game revenue fell from ~$11.5B in 2009 to ~$1.6B in 2026, a -10.36% CAGR, mirrored by Sony's -9.26% physical sales CAGR (FY17-FY25). Analysts note few physical hits exceed 100K sales, and Sony cites supply risks and lower profitability for shifting to digital.

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Sales data from one of gaming's most influential geographies shows a major downturn for physical game sales.

Sales data indicates bleak future for physical games in US 2

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Sony's decision to cut physical game discs has prompted major online pushback, however the vast majority of gamers in regions like the US have been favoring digital for years now.

Insights and sales info from trusted data-tracker Circana show that physical game sales revenue peaked in 2009 with an estimated $11.5 billion earned, dropping down to just $1.6 billion by 2026. That's a negative CAGR rate of -10.36% across the aforementioned period. Sony's own sales data shows that physical game sales were at a negative CAGR of -9.26% from FY17 to FY25.

Read more: Gamers taught PlayStation to kill game discs, analyst says

Sales data indicates bleak future for physical games in US 1

Circana analyst Mat Piscatella also shared other highlights about sales trends for physical games on PlayStation, saying that only 7 games have sold 100K or more physical copies in the US. This admittedly needs more context, as the range beyond 100K can reach into the millions, but based on the trends and accompanying sales data, it doesn't seem likely that gamers will be spending big on physical game sales outside of maybe big tentpole games like GTA VI.

Analysts have been more vocal about industry trends since Sony's controversial announcement, and here at TweakTown we've also tried to illustrate why these things are happening and Sony's thought process around the decision. Ultimately, this comes down to protecting and future-proofing profits against uncertainty and risk. In less than a decade, Sony and other platform-holders have faced irreparable disruption to their supply chains with COVID in 2020, and the RAM chip shortages in the present day. Other things like tariffs were a roadblock too, needlessly getting in the way of highly sensitive plans.

Frequently Asked Questions

TweakBot answers common questions about this news using TweakTown's own coverage from this page and related content from our archive. Tap a question to reveal the answer, or type your own below.

Question #1

What does Circana's data say about the year-by-year decline in US physical game revenue between 2009 and 2026?

Question #2

How does Sony's reported negative CAGR for physical game sales from FY17 to FY25 compare with Circana's longer-term rate?

Question #3

How might supply chain disruptions like COVID and RAM chip shortages have influenced Sony's decision to cut physical discs?

Question #4

What reasons does the article give for digital game distribution being more profitable than physical discs for Sony?

Have a question not listed here? Ask below and TweakBot will answer it.

For Sony, it's not that physical games don't work or don't sell; it's that they don't work as well as digital, and simply don't make as much money. Right now, with everything in such disarray, Sony is trying to smooth out risk in as many ways as possible, including a permanent cost reduction in production.