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New PlayStation games will no longer be released on discs from January 2028, the gaming giant has announced.
Sony said in a blog post, external new games would still be able to be bought in shops, but they would come with a digital code.
It comes just days after Rockstar announced the hotly-anticipated Grand Theft Auto VI would similarly launch without a physical disc.
It marks a significant moment for the gaming industry, which has in recent years begun to rely more and more on digital distribution.
Sony said the move came "as consumer preferences and the broader entertainment industry continue to shift away from physical discs to digital".
"This is a natural direction for Sony Interactive Entertainment to adapt to consumer trends as the general preference for digital media significantly outpaces physical discs," it added.
But it has been met with some pushback online, with gaming journalist Vikki Blake calling it a "body blow to consumer rights".
"It's of huge concern for game conservation and a massive problem for gamers with lower disposable incomes who rely on part-exchanging or loaning games from friends to keep up with the AAA price tags," she said.
"Just one console cycle ago, Sony made a tongue-in-cheek advert about how easy it is to share games on PS4 as a dig at competitor, Xbox.
"It's not funny anymore, is it?"
Christopher Dring, editor of The Game Business, said the news surprised him despite digital downloading being the "dominant form of buying PlayStation games today".
"We still see millions and millions of PlayStation games sold as physical goods," he said.
"It's a significant business and there are lots of players that prefer to buy this way. It's tough news for retail."
Meanwhile Lootbox Gaming, an independent retailer in Delaware which declined to stock the discless physical edition of GTA 6, said the move was "an attack on not only gamers and collectors, but also developers, publishers, distributors and retailers around the globe".
"Essentially, this is an attack on anyone who cares about video games or cares about the right to own your purchases," a spokesperson said.
PlayStation said the move would have no impact on games which are already released, or would be released before January 2028.
Sony has also come under criticism for pulling over 500 films and TV shows purchased on the PlayStation Store from people's collections with no compensation.
The firm said its arrangement , externalwith the film production company StudioCanal has ended, meaning it no longer has the rights to sell those TV shows and movies, and they will disappear from people's collections on 1 September.
Gamers previously told the BBC they were concerned about GTA being released without a disc - with one criticising it as this meant they would not be able to lend the game to a friend or sell it on.
The BBC has asked Sony whether it plans on making it possible to transfer ownership of a digital game in the future, in light of this announcement.
The firm has yet to comment.
