90% of Square Enix game sales now digital, as Final Fantasy faces a disc-less future

As publishers update investors, the focus is on whether the results justify PlayStation’s shift away from physical games. In its Q1 FY 2027 report, Square Enix revealed that over 90% of its game sales are already digital. Future releases like Final Fantasy 7 Revelation could still ship on discs, but the trend is concerning collectors.

Physical/digital splits

The company sold 6.65 million units of downloadable software between April 1st and June 30th 2026. Meanwhile, sales of packaged software totaled 730,000. At 9.9%, physical game sales fell from the previous quarter, when they still accounted for an 18.7% share.

Final Fantasy 14 performance was again strong, with players welcoming the Evercold expansion announcement. Net sales of MMOs rose, although development costs limited increases in operating income. Still, even titles that shipped on Xbox/PS5 discs and Switch 2 cartridges saw buyers preferring digital purchases.

Square Enix HD games, which include the multi-platform Final Fantasy 7 Rebirth, also met or exceeded expectations. Net sales jumped by 8.8 billion Japanese yen compared to the same period in 2026. Many titles, like The Adventures of Elliot: The Millennium Tale, were available in physical and digital forms.

The results are in line with recent fiscal summaries from Capcom and Sony. The Resident Evil publisher confirmed that physical sales had fallen to 7%. The PlayStation Store is also thriving, with 85% of game purchases now digital. Yet, there is some confusion about how the companies arrive at these figures.

How trends may impact Revelation

It’s not clear how Square Enix classifies Switch 2 Game-Key cards. With Final Fantasy 7 Remake and Rebirth exceeding cartridge capacity, the download-based alternative has become essential. Looking ahead, there is uncertainty about whether Final Fantasy 7 Revelation will release on physical media.  

The director of the remake trilogy, Naoki Hamaguchi, is still pondering how to accommodate collectors. Speaking to GamesRadar+, he didn’t rule out a code-in-box solution, as seen with GTA 6. Nevertheless, Hamaguchi hopes to find a compromise that offers the advantages of discs and cartridges. Among other concerns, critics worry that digital ownership is too reliant on temporary licenses.