Sony may be reconsidering its move towards an all-digital PlayStation future, with a new report claiming Microsoft’s plans for its next-generation Xbox could be putting pressure on the company to continue supporting physical games for longer.
The rumour originates from information discussed by Eurogamer Spain following Gamescom 2026 and subsequently reported by MP1st. According to the report, Microsoft has been speaking with publishers about its next-generation Xbox platform, codenamed Project Helix, and is allegedly pitching a strategy that strongly supports physical games. The console has reportedly even been described to publishers as being “100% physical,” although exactly what that means for the final hardware remains unclear.
One possibility is that Microsoft could combine physical game support with its newly announced disc-to-digital technology. Xbox recently confirmed a system that allows players to insert supported Xbox One and Xbox Series X game discs into a compatible console and claim a digital entitlement. This can allow supported physical games to benefit from features such as Xbox Play Anywhere and Xbox Cloud Gaming while the original disc continues to function normally.
Microsoft has yet to confirm whether Project Helix itself will feature a built-in disc drive. Recent comments from Xbox leadership have avoided committing to one, while previous reports suggested the decision had not been completely finalised. The latest rumour could therefore indicate that Microsoft is reconsidering how important physical media will be to its next-generation strategy.
Sony is reportedly paying close attention. The company has previously announced plans to end physical disc production for new PlayStation games beginning in 2028, but the latest report claims Sony may now be considering delaying that transition. If Microsoft continues supporting discs while PlayStation moves entirely towards digital distribution, Xbox could potentially appeal to players who still value physical ownership, collecting, trading and reselling games.
Perhaps the most surprising part of the report involves an unnamed major game publisher. The company has allegedly approached Sony regarding a “massive” upcoming title and warned that without a guaranteed physical PlayStation release, it could potentially skip the platform and instead launch the game on Xbox and Nintendo hardware. The publisher and game haven’t been identified, although the report specifically states that the company isn’t Rockstar Games.
For now, none of these claims have been officially confirmed by Sony or Microsoft. Project Helix is officially in development, and Microsoft’s new disc-to-digital system is real, but the company hasn’t confirmed that its next Xbox will include a disc drive or follow the reported “100% physical” strategy.
Still, the report comes at an interesting time for physical games. Sony’s plans have faced resistance from players concerned about game ownership and preservation, while Microsoft has recently placed greater emphasis on carrying existing Xbox libraries into future generations. If the latest rumours prove accurate, physical media could unexpectedly become an important battleground between PlayStation and Xbox heading into the next console generation.