Jason Schreier shared new information about the future of physical format on PlayStation:
Sony considers that its digital player base is already large enough to do without those who continue buying games in physical format.
The company will not change its retail distribution model: stores will continue selling boxes, but these will only include a download code.
Currently, when Sony sells a First Party physical game to a retailer, the latter gets around 30% of the sale price ($70). With the 100% digital format, Sony would keep all of those revenues. As a result, the company expects to significantly increase its profit margins.
Additional information from other reports:
Sony would be convinced that, over time, most players will end up accepting the transition to a 100% digital ecosystem. The company believes that users will continue supporting PlayStation even without the option to buy physical games.
Additionally, they consider that it is not necessary to maintain direct communication with fans about this decision, as they trust in the strength of the brand and the loyalty of their community.