We probably won’t be seeing a new generation of consoles any time soon, but analysts have already begun to speculate about what features the next Xbox and PlayStation machines will have. And, according to one analyst, physical discs will remain in fashion.
Wedbush Securities analyst Michael Pachter recently spoke on the subject in episode 106 of Pachter Factor, and according to him, there are two pressing reasons that consoles will continue to support physical discs.
“Consoles will very likely have disk drives and the real reason for the slot for disk is that you can’t sell a console without retailers.… Because this is a physical good, you gotta buy it at a retailer, you can’t download a console,” Pachter said (via WCCF Tech). “So, if you have to buy a console at retail, you can’t say to a retailer, ‘Hey, please promote and sell my console but we’re not going to have any games available.'”
He added, “You kind of have to give a concession to retailers that they can at least hold out the hope the consumer will come back and buy disks.”
The second reason that physical discs will still exist, according to Pachter, is for the benefit of the consumer. According to him, a “healthy percentage” of consumers still value having physical games, whether for purposes of collecting or for the value of reselling and trading used games.
“I think used games have some value, some healthy number of consumers value used games. I don’t see disk drives going away,” Pachter concluded.
While it’s fun to speculate, we likely won’t be seeing a generational leap in consoles any time soon. While rumors about a PlayStation 5 sprung up earlier this year, the latest reports say that we likely won’t be seeing a new console until 2020 at least. The same likely goes for Microsoft’s Xbox line, which is doing similar iterative upgrades with the Xbox One X and One S rather than a full jump to a new generation. Nintendo, meanwhile, launched the Nintendo Switch just last year, so that console still has a full cycle to go.
Source: Pachter Factor on YouTube