The debate over physical game releases continues, but CI Games founder and CEO Marek Tyminski believes the industry’s transition toward digital distribution is ultimately being driven by simple economics.
We know that Grand Theft Auto VI will not receive a physical edition, at least in the beginning, followed by Sony’s confirmation that it plans to stop producing new PlayStation game discs in 2028.
While many players have criticized both decisions over concerns surrounding ownership and game preservation, Tyminski argues that digital releases provide substantially higher returns for developers and publishers.
Speaking in a series of posts, Tyminski acknowledged that the shift is difficult for studios that continue to support physical media:
“GTA6 shipping with no disc feels unfair to studios still backing physical — and it’s accelerating the shift. Sony ending physical support from 2028 could slash disc releases as early as 2027 or even sooner.”
Although CI Games still plans to release Lords of the Fallen 2 on physical media, Tyminski admitted the business case is becoming increasingly difficult to justify.
“Business-wise it’s getting harder to justify when physical is way under 20% of sales and considering recent events.”
To illustrate the financial difference, Tyminski shared a breakdown comparing the revenue generated from physical and digital sales.
According to his estimates, a $69.99 physical game loses between 25% and 35% to retail margins, another 10% to 20% to distributors, while manufacturing costs account for roughly $10 per unit. That leaves developers with just over $26 per physical copy sold.
By comparison, digital sales can generate approximately $49 per unit at the highest margins.
“It only gets worse as prices drop. Large publishers sit on the better side of the equation, but even they make significantly more per digital sale. From a pure ROI standpoint, the choice is obvious.”
When asked whether premium-priced collector’s editions with physical discs could help preserve the format, Tyminski remained skeptical.
He suggested that making physical copies more expensive would likely reduce demand even further, making it increasingly difficult for publishers and console manufacturers to justify continued investment in disc production.
