Why the Death of the Physical Game Disc Is Driven Entirely by Math
The debate over physical discs versus digital purchases is a hot topic right now, but CI Games CEO Marek Tyminski recently moved the conversation to cold, hard mathematics. His detailed financial breakdown of modern game sales reveals exactly why the industry is rapidly leaving the physical disc behind.
Key Takeaways
- CI Games CEO Marek Tyminski reveals that digital game sales yield nearly twice as much profit for development studios compared to physical copies.
- Breaking down the standard store cost reveals why digital marketplaces provide a more sustainable margin for developers.
- The industry’s steady shift toward digital-only distribution is fundamentally driven by objective financial margins rather than consumer trends.
The video game industry is steadily abandoning the physical disc, driven entirely by mathematics. For development studios such as CI Games, the studio behind Lords of the Fallen, which operates across PlayStation, Xbox, and PC platforms, the financial gap between digital and physical distribution has become too significant to ignore.
CI Games CEO Marek Tyminski broke down the math on X, stating that for a $69.99 physical game, retail margins take 25-35%, distributors take 10-20%, and physical production costs about $10, leaving the studio with just over $26, compared to roughly $49 for a digital sale.
👉 READ ALSO: Sony Announces End of Physical PS5 Game Discs
Why are game studios pushing for an all-digital future?
Game studios are pushing for an all-digital future because digital storefronts offer significantly higher profit margins by eliminating physical production, shipping, and retail distributor cuts.
Marek Tyminski’s breakdown highlights the severe supply chain realities that developers face when shipping a boxed product. While gamers pay high fees, only a fraction of that money actually reaches the studio that created the game.
The physical supply chain requires compensating multiple intermediaries. Retailers and regional distributors command significant percentages of revenue simply to transport, store, and display game boxes on store shelves.
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.
— Marek Tyminski (@tyminski_marek) July 5, 2026
Physical delivers far less revenue per unit to developers, longer lead… https://t.co/gLkVTi5bDL
How do physical and digital game profits compare?
Physical and digital game profits compare drastically, with digital sales yielding nearly double the revenue for the developer.
On a standard $69.99 release, Tyminski says a studio earns approximately $49 through digital storefronts, whereas a physical copy nets the studio roughly $26 after manufacturing, distribution, and retail cuts are deducted.
The financial data shared by Tyminski provides a transparent look into the modern video game economy. Digital platforms typically take a flat 30% standard official fee for hosting and distributing the software.
While a 30% digital cut is substantial, it completely removes the compounding, variable costs of the physical retail model. It also removes the potential of producing more physical discs than will be bought, reducing waste and lost revenue.
What does this mean for the future of game ownership?
The future of game ownership is steadily moving toward an exclusively digital model. As development budgets rise, the financial pressure to maximize studio revenue makes the physical disc an increasingly unsustainable format.
Sony has already announced it will look to completely stop physical disc production on PlayStation by 2028. It’s only a matter of time before every other publisher and developer follows suit.
Fueled by a passion for gaming and the ever-evolving world of gaming news, Daniel loves connecting with seasoned and new players to bring games to life on the page, exploring their narratives and gaming trends. A self-published fiction and fantasy author, Daniel has nearly 20 years of experience writing gaming news and a love for storytelling that drives his enthusiasm to deliver breaking news, in-depth analysis, and industry innovations. You will find him in-game as "Windfell."
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Comments (1)
The WEF quote, 'You'll own nothing and you'll be happy,' is aging incredibly well in gaming. It's degrading to watch massive companies build their empires on the backs of loyal players, only to treat us like we don't matter. I wish the community would see the bigger picture and take a collective stand by closing their wallets. It’s easier said than done, but hitting their profits is the only way to remind these corporations who actually holds the power.