In response to Sony announcing that it will stop producing physical game discs for PlayStation starting in 2028, a lot of people have had a lot of things to say. One of those voices is Circana analyst Mat Piscatella, who offered a refreshing, if not brutal, reminder that your loyalty and love of PlayStation--or any other game console or franchise--means nothing to the corporate overlords controlling them. It's all about money, and it always has been.

"You can love your preferred video game ecosystem, franchise, or whatever all you want. You can think your years of customer loyalty should/will be reciprocated. But these businesses don't love you back. Same with your job, fwiw. You're a number on a spreadsheet," he said.

Piscatella also pointed out that, with forecasts for the PS6 and Project Helix to cost $1,000 or more (if they are ever released), console manufacturers like Sony and Xbox will "prioritize profitability" where they can. The thinking is that, if Sony can't convince as many people to buy a very expensive console, it can make up some of the difference by cutting out discs to improve margins.

As reporter Jason Schreier breaks down in a great video, a company like Sony would take home about $45.50 from the sale of $70 game sold at retail on a disc. With digital games, Sony keeps the full $70. It's not hard to see why Sony is shifting to an all-digital future.

Third-party games will go all-digital on PlayStation in 2028 as well, and this will help those publishers make more money (by way of improved margins), and Sony will make lots more money as well through collecting its platform fees.

"Digital is just too lucrative"

Dr. Serkan Toto of Kantan Games said Sony is not going to reverse its decision on killing off physical game discs because the money to be made in an all-digital world is too lucrative to ignore.

"I sympathize with physical media fans, but Sony will not reverse this decision," Toto told IGN. "They of course knew what the online reaction would look like, and they now wait for this storm to pass."

"Sony has over 120 million active PlayStation users," he added. "Around 50 million people subscribe to PlayStation Plus. As a thought experiment, let's say 500,000 cancel in protest, that would be just 1% of that business gone--of course not enough to Sony to start rethinking. Digital is just too lucrative."

The numbers

According to IGN's accounting, a first-party PlayStation game sold on a disc at retail would see Sony keeping about 65% of the sale price, with about 30% going to the retailer; the other 5% is for the manufacturing costs.

A third-party game sold on a disc at retail--say, a Call of Duty game from Activision--would provide Sony a licensing fee of about 15%.

For a digital game, a first-party game sold via the PlayStation Store would net Sony all of the revenue. For third-party games, Sony would collect its 30% cut as the platform owner. That works out to about $21 for a $70 game. When all games go digital in 2028, Sony stands to make significantly more money, as you can see.

What's next

For what it's worth, while Sony has confirmed plans to kill discs, Microsoft has not yet announced plans, but many are theorizing the next Xbox will be all-digital as well. After all, the numbers show that the share of digital game sales only continues to grow at Sony, Microsoft, Nintendo, and third-party publishers.

Sony still sells many millions of physical PlayStation game discs annually, and there are many people who want to see physical media live on. There are also real game preservation concerns in an all-digital world. More than 225,000 people have signed an online petition calling on Sony to reinstate physical games.

The obvious enthusiasm for physical media is unlikely to change the calculus for Sony for the main reason Piscatella and Toto laid out: money.

Obsidian Entertainment--the developer behind Grounded, The Outer Worlds, and Avowed--will reportedly shift strategies to work on a new Fallout game. That means that a planned Avowed sequel and other unannounced projects will get shelved in the process, according to Bloomberg. 

It's unclear whether this new Fallout game from Obsidian will be Fallout 5 or a spin-off similar to New Vegas. Fallout 5 was reportedly "greenlit" a year ago, though there were no details about the lead developer. In 2023, Obsidian CEO Feargus Urquhart did express interest in the studio making another Fallout game. 

Best Fallout Games, Ranked View Images

Bloomberg adds that studio design director Josh Sawyer is set to lead this new Fallout project at Obsidian. Sawyer previously served as the director of Pentiment as well as Fallout: New Vegas. The report noted that Sawyer was in charge of another RPG at Obsidian with similarities to Fallout before being reassigned. Bethesda oversees the Fallout franchise and will be involved on this project.

Obsidian was just hit hard by Xbox layoffs this week, with up to  25% of the studio's workforce fired by Microsoft. This was part of an Xbox reset plan put in effect by Xbox boss Asha Sharma, which will lead to 3,200 jobs overall cut over this next year. Sharma also stated that no announced Xbox games were getting axed, but obviously, unannounced titles are being canned. 

In general, Xbox looks set on investing in its biggest franchises, such as Fallout. There have been rumblings about a Fallout 3 remake in the works, though nothing official has been announced. Meanwhile, the Fallout TV series on Prime Video just received 10 Emmy nominations for the show's second season. 

Best Games Like Fallout 4 To Dwell In For 2026 View Images

As Sony plans to kill all PlayStation disc production in January 2028, a Canadian retailer has done what everyone was probably thinking of doing: urging the company to change its mind with a petition that's garnered over 220,000 signatures.

PNP Games is an independent retailer based in Canada that started in 2005 by selling games on eBay. Since then, it opened three locations around Canada, becoming a budding business that supplies its customers with everything from home goods like art and drinkware to gaming products such as controllers and consoles. Think GameStop but make it Canadian.

On July 1, just as Sony announced its plans to end disc production of all new PlayStation games in 2028, PNP Games started a petition called Don't Kill the Disc. The mission statement is simple: "Sign to tell Sony to keep disc-based games alive beyond 2028, so the next generation can own the games they play, not just rent them," per the Change.org petition page. "If we do not speak up now, the disc disappears, and the choice goes with it."

Since starting the petition, over 220,000 people have signed the appeal, essentially telling Sony that physical media is important to not just gamers but entertainment enthusiasts as a whole. In a July 6 IGN interview, PNP Games CEO Jade Pearce spoke about how vital physical media is for businesses and consumers.

"Physical games support an entire industry that an all-digital future quietly erases: retailers, distributors, manufacturers, warehousing and logistics, the pre-owned and trade-in market, and the collector and preservation community," Pearce said. "That is thousands of jobs and countless small businesses. Ending physical media removes consumer choice, weakens local economies, and hands a few platform holders total control over how, and whether, you can access the games you buy."

This sentiment is echoed in the petition's messaging as well. PNP Games noted that the death of physical media is "about jobs" as much as it is about the disc being "a real game" that you own, share, resell, trade, collect, gift, and pass down to your kids. An all-digital future puts the very idea of ownership in a precarious spot, which is what PNP Games hopes to change Sony's mind on with the Don't Kill the Disc petition.

"We are not against digital," Pearce wrote on the petition's page. "We are against digital being the only option. A large and passionate community still wants a real, physical game they own outright, and Sony is about to take that choice away."

GameSpot has reached out to PNP Games for comment and will update this story when we hear back.

You can imagine what the comments have been on the petition. Many of the signatories said Sony's decision weighs heavily on whether they'll buy PlayStation products going forward. Others took to calling the company consumer-unfriendly, stating they feel like Sony is taking advantage of the goodwill it built over the years. And quite a few mentioned that, if we're being hurtled toward an all-digital future, they might as well buy a PC. The internet--and the signers of the petition--have a lot to say about what Sony's doing.

Xbox's big reset continues, as the company has targeted RPG icon Obsidian Entertainment, laying off about a quarter of its staff and cancelling a sequel to the underrated 2025 action-RPG Avowed.

According to a July 8 Bloomberg report, Obsidian Entertainment has cancelled "multiple projects" so that the California-based developer can focus on a bigger franchise: Fallout. As part of the cuts, Avowed was a casualty, along with 52 workers, per a July 8 Game File report.

As Bloomberg noted, progress on the Avowed sequel was "going well" and "on track" to be announced in the next year. Obsidian Entertainment had even hoped to build upon the original game by developing the sequel more quickly using the already-created world and technology. Unfortunately, the project didn't fit into Xbox CEO Asha Sharma's overall strategy for Xbox, according to Bloomberg's sources.

That said, it appears there is actually a small chance the project could be un-canceled. According to Bloomberg, some of the remaining staff will continue working on the Avowed sequel with the hope that Xbox may see a reason for the project's existence in the future. But that's up in the air, despite reporting in February 2026 stating that Obsidian Entertainment would focus on more games in Avowed's universe, which it shares with Pillars of Eternity. (Pillars of Eternity is also in a state of limbo, with the last game, Pillars of Eternity II: Deadfire, launching in 2018 and receiving little to no news since its release.)

It's bummer news for fans of Avowed. Although the game didn't meet the sales expectations set forth by Microsoft, the high-fantasy RPG still reviewed relatively well following its February 2025 launch. GameSpot gave it a 6/10 in our Avowed review, but it has a "mostly positive" rating on Steam and an 80 Metacritic score.

I personally just finished Avowed after sinking more than 70 hours into the game, and I thoroughly enjoyed its mix of gunplay and melee combat. The narrative, while simple and predictable, was still enticing, and exploration was rewarding even if the world felt devoid of combat encounters after you've completed everything. It really is a solid amalgam of everything Obsidian Entertainment does well in a new setting.

A sequel could've been something awesome. The narrative ends on a cliffhanger, so there's more than enough meat on the bone to dig into the game's storytelling. On top of that, the world itself is rich with characters and conflicts worth exploring. And the powers! I never enjoy magic in games, but the spellcasting in Avowed felt great. I mained a big sword and two pistols, but on the occasions that I whipped out my spellbook, I felt like a badass wizard of the Living Lands.

Unfortunately, with this latest news, it appears that any hopes of an Avowed 2 have been dashed. The game's former director, Carrie Patel (who left in May 2025 to join the Netflix-owned studio Night Dive), wants to see more Avowed, but Microsoft just isn't interested anymore.

Regardless of if you play the action-packed dating-sim or not, you've probably heard a bit about the intense controversy surrounding Love and Deepspace recently. And no, it somehow has nothing to do with its spicy content or gacha-style gameplay. Instead, it revolves around the introduction--and quick cancellation--of Valko, the game's sixth love interest.

There's been a new development in the ongoing drama, and it doesn't look good for all the fans who have been petitioning for developer Papergames to bring Valko back. Per Kotaku, Papergames has announced it is pulling Love and Deepspace's booth from BilliBilli World 2026, one of Asia's largest anime and gaming conventions. This somewhat makes sense considering how profoundly his absence was felt at last week's Anime Expo, in which an entire booth that was originally reserved for a Valko cosplayer was left vacant. However, the exact phrasing, written below by cross-referencing numerous translations, is concerning:

"Recently, the game Love and Deepspace has attracted widespread attention from all sectors of society, causing significant distress to all players and creating a negative impact. We are deeply remorseful. We have no excuses, and must profoundly reflect, confront our own issues, and take responsibility. We solemnly offer our sincerest apologies to everyone!

"We sincerely accept all criticism and corrections regarding the problems exposed this time, and will not shirk our responsibilities," Papergames continued. "We will conduct comprehensive personnel training, self-examination, and rectification, using reverence for history, protection of national sentiment, and inheritance of Chinese culture as our benchmark."

While this reference to protecting "national sentiment" and using Chinese culture as a "benchmark" seem innocuous--respectful, even--the story continues.

Since news of Valko's removal surfaced, a battle perceived as being between Chinese Love and Deepspace fans--who overwhelming do not want Valko in the game--and Western audiences, who do, has ensued. Across social media, Chinese fans have shared posts that seem to indicate there are primarily three reasons Valko should not be in the game: 1) He's taking away attention that desperately needs to be spent on the game's main story and already-existing love interests, 2) His appearance goes against Chinese beauty standards, and 3) Valko's promotion slogans, which included "What's wrong with letting a wolf into the house?" could be perceived as condoning trespassing and sexual assault.

Shortly after Papergames announcement it would not be attending BilliBilli World 2026, the Chinese government made its own post latching on to the third of these points.

"Recently, an online game targeting female players has sparked widespread controversy. The game features a storyline where the male protagonist breaks into a woman's home late at night, accompanied by offensive promotional slogans such as, "What's wrong with letting a wolf into the house?", packaging the illegal act of trespassing as a romantic encounter. This kind of entertainment-driven, traffic-driven creative work disregards public order and morality, crosses legal boundaries, and may ultimately endanger public safety," a representative from the Ministry of Public Security News and Media wrote.

The post went on to say that, "If a game packages such behavior as 'fun interaction,' it may be suspected of promoting and glorifying illegal and criminal methods, which is not only a disregard for the authority of the law but also a blatant transgression against the spirit of the rule of law." The writer then cited a 2018 case in which a 15-year-old "addicted to a violent video game" murdered his 23-year-old female neighbor as evidence that "online game content that crosses ethical boundaries can seriously negatively impact the healthy development of teenagers."

"As of now, all relevant characters and storylines in the game have been taken offline for rectification, a move that addresses public concerns," the post continues. "However, taking it offline is not the end; deeper reflection is needed. This incident serves as another warning to the industry: Any content production that deliberately blurs the lines of illegality, glorifies dangerous behavior, or undermines public safety will ultimately be subject to legal sanctions and public resistance."

In short, things are not looking too good for Papergames, which seems to have found itself in a lose-lose-lose situation that is quickly intensifying. With the Chinese government weighing in on the issue--and considering the amount of power it has over the country's media--it seems increasingly unlikely that Papergames will tempt legal action and that Valko will ever resurface.

In fact, this raised awareness could lead to more scrutiny towards Love and Deepspace in general, as the game frequently showcases behavior and scenarios that could be perceived as problematic, to borrow one of the internet's favorite words. The game's fifth love interest, Caleb, locks up and interrogates the player's character at one point, while Sylus fulfils all the dark romance tropes we love as the violent head of a criminal organization. It's possible all this attention could have major ramifications for the beloved game, and although the petition to bring back Valko is nearing a 250,000 signatures, I wouldn't count on that being enough at this point.

The nominees for the next Emmy Awards have been announced, and Amazon's Fallout TV show scored 10. Season 1, for comparison, picked up 16 nominations in 2024, ultimately winning two.

For Season 2, Fallout's Emmy nominations included nods for Production Design, Costumes, Hairstyling, and Stunt Performance, but no acting nominations. Many think Walton Goggins was snubbed after he turned in another incredible performance as The Ghoul in Fallout Season 2.

Here are the 10 Emmy nominations for Fallout Season 2:

• Outstanding Production Design For A Narrative Period Or Fantasy Program—"The Wrangler"
• Outstanding Fantasy/Sci-Fi Costumes—"The Strip"
• Outstanding Period Or Fantasy/Sci-Fi Hairstyling—"The Strip"
• Outstanding Period Or Fantasy/Sci-Fi Makeup (Non-Prosthetic)—"The Strip"
• Outstanding Prosthetic Makeup—"The Demon In The Snow"
• Outstanding Sound Editing For A Comedy Or Drama Series (One Hour)—"The Strip"
• Outstanding Sound Mixing For A Comedy Or Drama Series (One Hour)—"The Strip"
• Outstanding Stunt Coordination For Drama Programming
• Outstanding Stunt Performance—"The Profligate"
• Outstanding Emerging Media Program—"The World Of Fallout"

Fallout Season 3 is now in the works, with Goggins recently sharing a photo of himself getting back into character as production begins.

In the world of Fallout video games, it was recently reported that Obsidian is making a new Fallout game in collaboration with Bethesda Game Studios. There is no word on what this game is, however, or if it's separate from Fallout 5. Obsidian was one of multiple Xbox-owned studios that were hit particularly hard by the latest round of layoffs at Xbox, affecting about 1 in 4 developers there.

Microsoft recently announced mass layoffs affecting 4,800 people, including 3,200 at Xbox, and now US Senator Bernie Sanders (D-VT) has ripped the technology giant for cutting staff at a time when it's making massive profits.

Posting on social media, Sanders pointed out how Microsoft made more than $100 billion in profit in 2025, with CEO Satya Nadella getting paid $96 million. He also called out how US President Donald Trump's new tax plan would save Microsoft $12.5 billion.

"Please don’t tell me corporate tax breaks create jobs. It never trickles down," he said, calling out the Xbox layoffs and the Xbox console price hikes. The latest Xbox console price hike brings the Series X up to a whopping $800.

https://twitter.com/SenSanders/status/2074202502996582817

For the fiscal year that Sanders is referring to, Microsoft made $101.8 billion in profit (up 16%) on revenue of $281.7 billion (up 15%). Microsoft overall may have done well financially during the year, but Xbox was in a rougher spot, if commentary from Xbox CEO Asha Sharma is to be believed.

She has said the Xbox business is "not healthy" and that a variety of bets made by previous leaders Phil Spencer and Sarah Bond did not pay off. That's left Sharma in a position where Xbox's operating margins are 3-10x lower than what she said were "comparable platform and publishing businesses."

Sharma said Xbox was operating as a business with 3% margins, which means for every $100 made, the company spends $97 and keeps $3. A business operating at that margin level could be fine, but Microsoft's other business units have 40%+ profit margins.

Microsoft's stock price is down 19% so far this year and more than 22% over the past year. In fact, June 2026 was the worst month for Microsoft's stock price since December 2000.

Some of the bets that Xbox made that did not pay off as Microsoft envisioned included Xbox Game Pass, releasing games on rival systems, and buying up studios, Sharma said. For Game Pass, a recent report said some Xbox employees worried that the plan to launch new games into the service was not actually a smart move, but management proceeded anyway.

In addition to mass layoffs, Xbox is divesting of five studios. Double Fine and Compulsion are regaining their independence, while Ninja Theory and Undead Labs are being sold. Arkane Lyon is in the "consultation" process to determine its fate and the fate of the studio's upcoming game, Marvel's Blade.

Image credit: Bernie Sanders YouTube

Thomas Was Alone and Amberspire developer Bithell Games has announced its next project, a non-linear horror game in which the vampire King of England tasks you with assassinating his enemies. Set in an alternate timeline during the late '90s--so you're probably safe from hearing Hanson's MMMBop on repeat--Vampirium 1997 is billed as an immersive sim boiled to its essence by game director Mike Bithell.

"Dracula is King of England. At his command, master your dark gifts to assassinate his enemies and secure his vampiric empire. Infiltrate locked-down locations, adapt and survive in living environments, and uncover your own unique methods of executing missions," the synopsis for the game reads.

Gameplay will see players carefully plan their way through each level, observing their surroundings, talking their way out of danger, and upgrading their vampiric powers along the way. Every action has a consequence, and with each environment designed to be a dynamic arena for you to consider which tactics you want to use--from covert bluffing to overt decapitations--you'll have to carefully consider each move you make.

It's an area of expertise that Bithell Games excels in, as the studio has released several cerebral and challenging games over the years--including an official John Wick game that was sadly delisted in 2025.

https://youtu.be/li_NCnbNiAQ

Vampirium 1997 will be launching in early access for PC, but there's no exact release date for it yet. To set the mood, players can explore the dark fantasy world of the game through a novella that was recently released and runs for eight chapters. Titled "The Last Portrait," the story follows the artist Hart after they're commissioned to create a portrait of England's monstrous monarch.

Earlier this year Paralives released in early access, and so far, things are looking good for the life-sim. The game has proven to be popular since its May launch; the cozy vibes have been praised, and the promise of free post-launch DLC and updates for the lifespan of Paralives continues to be a big selling point. In an industry focused on extracting the maximum amount of cash possible out of every player, it has become the norm--just look at how GTA 6 is locking in-game shops away from players who purchase the standard edition--Paralives' commitment to investing in its players feels refreshing.

"That plan is something that we had announced before the game was released, and our sales in the first week--the first day--confirmed that that was going to be viable," Paralive's communication manager Gab Boyer-Antoni said to GameSpot. "We're a very small team of 15. We don't plan on increasing that much, just a few senior positions, and we don't have any investors. We don't have to pay back anybody. The development so far has been fully paid for by our Patreons. And we're good. We can last years like this and make sure that we offer free updates and free DLCs to players and keep on working on the game."

https://www.youtube.com/watch?v=JdM39bSS-JY&pp=ygURcGFyYWxpdmVzIHRyYWlsZXI%3D

Another game that has become notable for its free content drops is No Man's Sky, as it has upgraded its universe of explorable planets and systems with substantial expansions. These often come out of nowhere and with very little hype, and most importantly, they've all been free. Developer Hello Games has released over 30 of these expansions at no extra cost to their players since 2016, and they're largely credited with helping the game find its redemption arc and attract new players, 10 years after launch.

Paralives has already seen several pieces of free DLC added to the Gilmore Girls-inspired life-sim since launch--including an adorable collaboration with Unpacking--and its first major content update is expected to arrive this fall. Players have also been instrumental in creating new content for the game through mods, and if you're looking to grab a few, you can check out our guide on the best Paralives mods to download.

Fans of life-simulator games have been eating well lately, as the dominance of The Sims 4 has been challenged by new kids on the block like InZoi and Paralives. While both of these titles are considered to be serious challengers in a cozy genre of living your best life, the team behind Paralives doesn't see itself as a "Sims-killer," preferring instead to view the game as another option in the genre. After all, competition in this field will ultimately benefit players by offering them more choice.

"I think having more than one life-sim game makes for such a better experience for players," Paralive's communication manager Gab Boyer-Antoni told GameSpot. "It helps games get better and improve, and we want to offer a great experience for players. So that aspect of competition is great to have. There shouldn't be just one amazing [life-sim]. Also, I feel like a life-sim game is three games in one and caters to so many types of players.

"Some people just want to build their cozy little bedroom, apartment, or house, and they don't care about the live mode. Some people are really into the stories, the challenges, and [creating] generations of Sims, Paras, or Zoi. There are so many types of players, and I think we need a lot of games to help cater to different needs. It's a lot to expect one game to [do everything]. In most other genres of video games, you have a lot of [titles]. If you think of shooters, there are so many huge games that have huge fan bases--it's really rare to have just one that somehow caters to everybody. I think it makes for a stronger ecosystem of games that they don't."

It's still early days for Paralives, but the game appears to be hitting its stride mere months after launch. Its creators are already confident that it can deliver years of free content to its players thanks to strong launch sales, and it's looking to carve out its own space in this genre as its early access journey continues.

Meanwhile, The Sims 4 is looking to turn things around after several turbulent months, starting with an overhaul of the Maker Marketplace that angered the game's community. 

After two and a half years in early access, the Pokemon-like game Palworld has reached 40 million players before its 1.0 release. Developer Pocketpair announced this milestone just days before the game's massive 1.0 update, which brings several major changes to overhaul the game.

"Palworld passes 40 million players," the developer said on social media. "Thank you all so much for your incredible support! Over the last two and a half years, Palworld has grown alongside our community."

Of course, hitting the 40 million mark doesn't necessarily mean Palworld has sold 40 million copies. Palworld often ranks high on Steam's top seller list, but the game is also included in Xbox's Game Pass subscription. Having 40 million is still a major accomplishment, and the player count is likely to surge even higher with the 1.0 launch on July 10.

Palworld's big update was first revealed at Summer Game Fest with a cinematic trailer, and the developer also announced several major changes. These updates include several new Pals to catch, an improved combat system, and overhauled raid mechanics. Players can also expect revamped quests and main storyline missions to learn more about the world.

It seems the developer was initially considering a price hike for its creature-catching game, but it has now announced that Palworld's price will remain the same beyond early access.

"After much thought, we have decided not to raise the price of Palworld following the 1.0 release and will keep it at $29.99," the developer said. "We are incredibly proud of how far Palworld has come. Thanks to the amazing support of our players, it has become a success beyond our wildest dreams."

Palworld is currently available on PC, Xbox Series X|S and PlayStation 5. The game is not available on either Switch platform, as Nintendo sued Pocketpair in 2024 on patent-infringement accusations. Palworld was updated in 2025 with altered game mechanics due to the legal matter.