Sony has confirmed that all PlayStation 4 games will be available as digital downloads. This is part of Sony's push to the cloud and will reduce the costs to game manufacturers as they don't have to produce CDs. Shuhei Yoshida, Worldwide Studios President at Sony, confirmed the details.

We're shifting our platform more and more to the digital side - PS4 will be similar to PS Vita in that every game will be available as a digital download, and some will also be available as a disc.

It's very possible that this cloud push could result in smaller titles not being available in physical form in countries where broadband internet is widely available. We'll know more once the console actually launches around holiday 2013.