Sony Corp. (NYSE: SONY) announced plans to discontinue its physical gaming discs starting in 2028. According to the company, the move is being made to coincide with consumer preferences. That sentiment is backed up by Take-Two Interactive (NASDAQ: TTWO) , which announced that its latest version of Grand Theft Auto will be available exclusively in a digital format.
SONY hasn’t moved much since the announcement, and for good reason. The issue of physical discs doesn’t address the larger threat that’s facing the gaming industry as a whole.