CI Games unit economics: $26 physical vs $49 digital forces mid-tier exit ahead of Sony 2028
Summary
CI Games CEO Marek Tyminski breaks down why physical distribution is now indefensible for mid-tier publishers
A $69.99 disc nets developers ~$26 per unit versus ~$49 for digital
Physical is already under 20% of CI Games' sales, the threshold Tyminski cites as the breaking point
Sony's 2028 disc production cutoff could collapse disc releases as early as 2027
"From a pure ROI standpoint, the choice is obvious."
01
Physical nets $26 per unit, digital nets $49
A $69.99 physical game leaves developers just over $26 after all deductions
Retail absorbs 25%-35%, distributors take 10%-20%, manufacturing costs ~$10 per unit
Digital sales return approximately $49 per unit at peak margins - nearly double the physical yield
Physical cost layers are fixed regardless of volume; digital scales without incremental unit cost
"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."
02
Sub-20% share removes the last justification for the format
Physical is already "way under 20% of sales" for CI Games - Tyminski's stated breaking point
Fixed disc infrastructure spread over a shrinking base further compresses per-unit returns
Lords of the Fallen 2 will still ship physical, but Tyminski openly questions the rationale
"Business-wise it's getting harder to justify when physical is way under 20% of sales and considering recent events."
03
GTA VI precedent and Sony's 2028 cutoff compress the transition window to 12-24 months
Rockstar shipping GTA VI disc-free removes the highest-revenue franchise from the format
Sony confirmed it will stop producing new PlayStation discs in 2028
Tyminski warns retailers and distributors will de-prioritize discs well before Sony's cutoff
"Sony ending physical support from 2028 could slash disc releases as early as 2027 or even sooner."
04
Collector's editions rejected as a structural fix
Tyminski assessed and rejected premium physical pricing as a margin repair
Higher price points would suppress demand at the moment the format needs scale
Without volume, console manufacturers cannot justify continued disc infrastructure investment
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