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CyberConnect2 CEO Hiroshi Matsuyama recently expressed support for the industry's transition from physical media to digital distribution. In a video posted on October 2, he argued that while the shift may be culturally regrettable, it offers significant financial advantages for developers by eliminating production and distribution costs associated with physical discs and cartridges.
Matsuyama highlighted that developers currently incur expenses purchasing physical media from platform holders like Sony and Nintendo. With major publishers like Capcom and Square Enix reporting that over 90% of their revenue now stems from digital downloads, he noted that maintaining physical production lines is no longer a practical business strategy for professional developers seeking to maximize profitability.
Technical limitations also drive this change, as modern games frequently exceed 160GB or 200GB. Matsuyama pointed out that standard Blu-ray discs are limited to approximately 80GB, making them insufficient for large-scale titles like GTA 6. Similarly, he noted that Nintendo Switch cartridges lack the capacity required for contemporary game sizes.
Despite his stance that physical discs are destined to disappear, Matsuyama acknowledged that the market for collectors will likely persist. He expects that limited editions or physical packages containing digital download codes will continue to be produced to cater to enthusiasts, even as the industry moves away from traditional disc-based distribution.
