A complete farewell to physical discs! SONY (SONY.US) PS platform announces full digitization by 2028, with over $7 billion second-hand market facing 'wipeout' risk

In June 2013, Sony (SONY.US) PlayStation released a short video demonstrating how simple it was to share games on PlayStation.

At the time, Sony executive Shuhei Yoshida simply handed a disc to his colleague Adam Boyes. It was more than just a basic demonstration—it was widely interpreted as a jab at rival Microsoft Xbox’s restrictive game sharing policies.

Jack Tretton, then President and CEO of Sony Computer Entertainment America, stated at a conference that same year, “You can trade it in at a retail store, sell it to someone else, lend it to a friend, or keep it forever. When a player buys a PS4 disc, they own the right to use that copy of the game.”

This statement drew a standing ovation from the audience and fueled a strong backlash that eventually forced Xbox to rescind its restrictive policies.

Now, in the eyes of some, Sony is becoming the tyrant it once mocked.

According to news from Zhitong Financial APP, PlayStation has announced that starting January 2028, it will stop producing physical discs for new, unreleased games on its consoles, making all newly released games digital-only.

Even if boxed retail versions are sold, they will only contain download codes, not discs.

One of the first games to adopt this model is the highly anticipated Grand Theft Auto VI (GTA6), published by Rockstar Games under Take-Two Interactive, scheduled for release this year.

The business logic benefits Sony. By selling more digital games, the company reduces the need for manufacturing physical packaging, and by eliminating physical discs entirely, it increases its profit margin.

Michael Pachter, Managing Director of Strategic Planning at Wedbush Securities, said this move will save Sony some money, but “no question, consumers will pay the price in terms of having fewer choices.”

A disc can be resold secondhand, traded in for credit, lent to a friend, given as a gift, displayed on a shelf, or retained even after digital stores close. Download codes offer none of these options.

Without physical discs, players lose the ability to buy cheaper secondhand games or recoup funds by selling finished games. This change means Sony will have tighter control over the sales channels, timing of discounts, and how long consumers have access to games.

Kazunori Ito, Director of Equity Research at Morningstar, commented, “This is a supremely ironic twist.” Sony gained its reputation by promoting physical discs as a “simple, consumer-friendly” choice in 2013.

On YouTube, gamers have dug up Sony’s old video and left biting remarks: “This is like watching your wedding video after getting divorced,” one user wrote. “Sigh, how the mighty have fallen,” wrote another.

Existing physical games and disc versions released before the deadline will not be affected.

Michael Futter, founder of gaming industry consultancy F-Squared, argued: “This is an extremely anti-consumer decision, without any justified reason, reflecting contempt for players within their own ecosystem.”

For Futter, the problem lies in consoles being closed ecosystems controlled by the platform holders. On PC, players can buy games from other markets such as Steam or Epic Games Store.

“Sony wants us to believe that the PC market’s shift to digital is the same as what’s happening with consoles. But it’s not at all the same,” Futter said.

Secondhand Market Decline

Sony’s move has a direct impact on the secondhand gaming economy. According to Dataintelo, the global secondhand gaming platform market—including used games, consoles, accessories, and peripherals—was valued at $7.2 billion in 2025, and is expected to reach $13.8 billion by 2034.

Pachter from Wedbush stated, “Realistically, historically at least one-third of games are sold secondhand, and those selling secondhand games use the funds to buy new ones. Physical game retail is doomed.”

While older games can still circulate even after disc production stops, that’s not possible with digital titles.

Morningstar’s Ito expects the secondhand games market to “continue shrinking, and eventually disappear.”

According to Futter, compared to PC platforms—where games can be sold across Steam, Epic Games Store, GOG, and others—developers will have less flexibility on discounts under this model.

However, Sony supporters might argue that the market has changed since 2013. In Sony’s FY2025 results, revenue from PlayStation 4 and 5 physical games was nearly ten times lower than revenue from full digital game downloads.

In its announcement, Sony stated the decision was “the natural direction for Sony Interactive Entertainment as consumer trends overwhelmingly favor digital media over physical discs.”

Ubisoft executive Philippe Tremblay said in 2024 that players should “get used to not owning your games,” which sparked major outrage at the time.

Sony also recently announced that, as of July 2027, purchase functionality in the PlayStation Store for PS3 and PS Vita will close in most countries.

Additionally, due to licensing agreements, over 500 previously purchased films will be removed from users’ PlayStation media libraries, with no mention of compensation in Sony’s notice.

Nevertheless, some remain wary of the potential implications of this move.

“What’s to stop PlayStation from taking the same action with the games we’ve purchased?” Futter wondered.

Ito also voiced concern. “There’s a fundamental difference between consumers embracing this shift because they see value, and having it forced upon them by eliminating alternatives,” he said.

“Most people would prefer to transition in their own way and at their own pace, rather than being forced by the end of physical discs,” he added.