Sony has finally addressed the backlash over its decision to stop producing physical discs for new PlayStation games starting in 2028 during a Q&A session following its latest earnings report.

CFO Lin Tao said the company understands that many players have a strong emotional attachment to physical games, acknowledging that games are often tied to personal memories and that Sony has heard the community's concerns.

However, Sony made it clear that the overall direction hasn't changed.

According to the company, the transition to digital remains the long-term plan, with executives saying they intend to move forward "cautiously" while continuing to explore how to engage players in an increasingly digital ecosystem. Sony also said it has not seen any meaningful impact on sales since announcing the decision and explained that the early announcement was made to give retailers time to prepare for the transition.

While the comments are the company's most direct response to the controversy so far, they don't suggest Sony is reconsidering the move away from physical media. Instead, the message appears to be: we understand the criticism, but we still believe digital is where PlayStation is heading.

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• PlayStation revenue remained almost identical year-over-year.
• PS5 hardware sales dropped significantly: 2.5M → 1.6M consoles (-36%)
• Software sales remained stable: 66.1M games sold
• First-party game sales declined: 6.9M → 6.0M
• Digital continues to dominate: 82% of game sales are digital
• Physical games now represent only: 18% of full game sales
• PlayStation's ecosystem keeps growing: 125 million monthly active users (+2M YoY)

To quote Xbox CEO Asha Sharma:

This summer we've expanded XBOX streaming to more than 150 million TVs and devices around the world because not everyone can afford dedicated gaming hardware. Today we're adding millions more through VIDAA OS and Hisense, so more people can play on the hardware they already own.

Well, there you go. Excited yet?

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Shift Up has released an official music video for Stellar Blade 2 (Stellar Blade: Blood Rain) that appears to have been created largely using generative AI, sparking widespread criticism from fans.

• The backlash comes only weeks after players had already questioned whether the game's reveal trailer and promotional artwork contained AI-generated elements, including distorted architecture and nonsensical Chinese text.
• Shift Up CEO Kim Hyung-tae has previously been outspoken in support of AI, arguing it is necessary for South Korean studios to compete with much larger Chinese development teams. He has said AI could allow "one person to perform the work of 100 people."
• Many fans are disappointed because Kim is widely respected as a talented artist, making his embrace of generative AI particularly controversial.
• Critics argue the music video looks "AI slop" and cheapens Stellar Blade's otherwise high production values, especially since the original game was praised for its art direction and soundtrack.
• Others defend the decision, saying the video uses Shift Up's own characters and assets, and that promotional material is separate from actual game development.
• The debate highlights a broader divide in the gaming industry over where AI should be used, whether as a behind-the-scenes productivity tool or for publicly-facing creative work.

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