The company says this is a "natural direction" for the way the industry is going, and that the "general preference for digital media significantly outpaces physical discs". They still say they'll be providing choices for where people buy their games (including at retailers), but the best you'll get from a physical purchase is seemingly a digital code.
"As consumer preferences and the broader entertainment industry continue to shift away from physical discs to digital, physical game disc production for all new games releasing on PlayStation consoles will be discontinued starting January 2028. Following this date, new games will be available on PlayStation Store and at retailers in digital formats only. This transition has no impact on games that already released, or will be releasing, prior to January 2028 in disc format."
"This is a natural direction for Sony Interactive Entertainment to adapt to consumer trends as the general preference for digital media significantly outpaces physical discs. This transition will enable us to align more closely with how most of our community prefers to access and play games today."
So what does this mean for Xbox and Project Helix? We've heard rumours for a while now that Xbox isn't planning to support disc drives on the next-gen Xbox console, suggesting that both Microsoft and Sony will be going down the same path when it comes to physical releases in the future.
That said, the reaction to today's news has already been very critical, and many commenters are pointing out that Xbox has the "greatest opportunity" to provide an alternative for fans of disc-based releases going forward.
To be honest, we can't see discs playing a big role in the future of Xbox, as physical sales have already been heavily skewed towards PlayStation over the past few years, and even Sony doesn't think they're worth the effort anymore.
Who knows, though! We'll be keeping a close eye on the situation either way, and with more Project Helix information set to be revealed later in 2026, a definitive answer might be incoming over the next few months. Stay tuned.