Sony’s Physical Game Costs Revealed Amid Shift Away From Discs

Sony and Microsoft are moving away from discs not out of greed, as a single Blu-ray is expensive for a publisher, and physical versions of games end up costing more than the 30% commission charged by digital storefronts once retailer markups and logistics are factored in.

Producing physical copies of games is genuinely expensive for publishers. Journalist Stephen Totilo of Game File learned how much disc production costs from sources within the supply chain.

Mass production of a dual-layer Blu-ray costs about $10 to $11 per disc. At a game price of $70, this accounts for roughly 15% of the cost. Shipping, warehousing, and intermediary markups add to these expenses. According to Totilo, major retailers like Media Markt take another 15% to 20%.

The process itself is also complicated. A publisher informs Sony or Microsoft of its desire to release a physical version, signs an agreement, and the console manufacturer then certifies the game. Next, the cover art is created, and the publisher and the manufacturing plant determine the disc capacity. Single-layer 25 GB media are cheaper, which is why part of the data sometimes has to be downloaded from the internet.

As a result, even a 30% commission from Steam or the PlayStation Store can turn out to be more profitable for a publisher. Digital platforms take a percentage of the game’s price, whereas disc production and shipping have fixed costs regardless of whether a AAA hit or an inexpensive indie project is being sold.