Atari, Iam8bit, Lost in Cult, and Silver Linings Interactive are among the firms lamenting the loss of physical games
Image credit: Rafal Jedrzejek via Unsplash News by Sophie McEvoy Staff Writer Published on July 3, 2026 Follow Sony Earlier this week, Sony announced plans to discontinue production of physical discs for new PlayStation games launching from January 2028.
After that, games will be sold only in digital format, while titles released on disc before January 2028 will not be affected.
Sony has reportedly begun repurposing its last physical disc factory . Workers at the Austrian plant are being retrained to manufacture optical microlenses for power-consumption applications.
The platform holder also revealed it would be closing down the PlayStation Store on PS3 and PS Vita by July 2027, meaning that new content purchases will no longer be possible once these stores close.
Sony's shift to an all-digital model has raised concerns among developers and publishers who consider physical media essential to the gaming ecosystem and its consumers.
To understand the impact of ending physical disc production, we collected responses from game companies about the implications for creators, collectors, and game preservation.
Iam8bit produces premium collector's editions of physical games, including the recent Blue Prince Commissary Bundle for PS5 and an exclusive PS5 edition of Fear the Spotlight with unique cover and disc art.
In a statement sent to GamesIndustry.biz , Iam8bit co-owners and co-creative directors Jon Gibson and Amanda White said:
"We are profoundly disappointed by Sony's decision to suspend physical games production in 2028. Physical games are vital to games preservation, ownership, and consumer choice, values that have guided iam8bit since our first physical release in 2016. Our commitment to these values remains unchanged. Long live physical media."
Atari is known for its physical game releases. Its subsidiary, Digital Eclipse, recently announced a deluxe physical version of Barbie Rewind for PS5 and Nintendo Switch 2 that comes with a Barbie doll.
Atari also released collector's editions of Mighty Morphin Power Rangers: Rita's Rewind and The Thing: Remastered, featuring steelbooks and additional physical items.
"We remain committed to game preservation and creating products for fans for whom collecting physical editions is an important part of their gaming experience, along with physical items that allow them to celebrate their favourite games," the firm told GamesIndustry.biz .
"We strive to make the games we develop and publish as accessible as possible, which includes distributing physical editions whenever feasible. As the market evolves, we'll continue to explore new and compelling ways to satisfy collector demand."
Manchester-based Silver Lining Interactive often issues physical versions of its games after digital release. Founder Luke Keighran describes this as a highly profitable part of the business.
"We do not only have a very, very strong retail market, but a wholesale market as well," he told us earlier this year . "Day-one purchases are becoming more difficult for retail, but the catalogue business is still extremely strong. If a game does well on digital, it will normally do well at retail."
In a statement shared to LinkedIn , the company said it was "obviously disappointed by the news" and highlighted that "there is still a large community of customers who prefer and cherish their physical ga…