Sony PlayStation announced it will end physical disc production for new games released on its consoles starting in January 2028, making new releases digital-only. The company stated the decision is a natural direction to adapt to consumer trends as general preference for digital media significantly outpaces physical discs. The move marks a reversal from Sony's 2013 stance when it defended physical game sharing and mocked rival Microsoft Xbox's restrictive policies, with then-CEO Jack Tretton stating gamers have rights to trade, sell, lend, or keep physical discs forever.
Sony PlayStation Ends Physical Disc Production for New Games in January 2028
PlayStation announced it will end physical disc production for new games released on its consoles starting in January 2028. Boxed retail versions, if sold, will contain a download code rather than a disc. One of the first games that will reportedly use this model is Take-Two Interactive's Grand Theft Auto 6, published by Rockstar Games and slated for release this year. Existing physical games and titles released on disc before the cutoff will not be affected.
In June 2013, Sony's PlayStation put out a short video demonstrating how easy it was to share games on PlayStation. Then-Sony executive Shuhei Yoshida handed a disc to colleague Adam Boyes. "Trade in the game at retail. Sell it to another person. Lend it to a friend, or keep it forever," then-President and CEO of Sony Computer Entertainment America Jack Tretton said at a conference that same year. "When a gamer buys a PS4 disc, they have the rights to use that copy of the game." The line sparked a standing ovation and helped intensify the backlash that led Xbox to roll back its restrictive policies.
Industry Experts Criticize Consumer Impact of Digital-Only Shift
Michael Pachter, managing director of strategic planning at Wedbush Securities, told CNBC that the move will save Sony a bit of money, but "there can be no question that the consumer pays the tax in terms of less optionality." A disc can be resold, traded in, lent to a friend, given as a gift, kept on a shelf, or preserved after a storefront shuts down. A download code cannot do any of that.
"This is a truly ironic turn of events," Kazunori Ito, director of equity research at Morningstar, told CNBC. Sony won goodwill in 2013 by presenting physical discs as the "simple, consumer-friendly option," he said. "This is an extremely anti-consumer decision that has no legitimate justification and communicates a disdain for players in their ecosystem," Michael Futter, founder of video game industry consultancy F-Squared, told CNBC.
Futter noted that consoles are closed ecosystems controlled by the platform holder, unlike PC where players can buy games through other marketplaces like Steam or the Epic Games Store. "Sony would love for us to believe that the PC market's shift to digital is the exact same thing as consoles going down that path. It simply isn't," Futter said. Ito stated, "There is an important difference between players accepting that shift because they see value in it, and having it effectively forced on them by taking away the alternative."
Second-Hand Gaming Market Faces $7.2 Billion Decline
Sony's move has direct implications for the second-hand gaming economy. Dataintelo estimates the global second-hand game platform market, including pre-owned games, consoles, accessories and peripherals, was worth $7.2 billion in 2025 and will reach $13.8 billion by 2034. "Realistically, at least 1/3 of games have been sold historically as used, and the games that were sold used also provided currency to the gamer who traded them in as cash to pay for new games," Wedbush's Pachter said. "Brick and mortar game retail is doomed."
Morningstar's Ito expects the second-hand market for games to "keep shrinking and eventually disappear." Developers will have less flexibility over discounting than PC platforms, where games can be sold across Steam, Epic Games Store, GOG and other stores, according to Futter.
Sony's results for full-year 2025 showed that revenue from PlayStation 4 and 5 physical games is almost 10 times less than the revenue from digital downloads of full games.
Digital Ownership Concerns Emerge After PlayStation Store Closures
Sony announced that PlayStation Store purchasing on PS3 and PS Vita will close in most countries in July 2027. Separately, over 500 previously purchased movies will be removed from users' PlayStation libraries because of licensing agreements, with Sony's notice making no mention of compensation.
"What's to stop PlayStation from taking the same actions with games we've purchased?" Futter posited. Ito expressed concern, stating, "There is an important difference between players accepting that shift because they see value in it, and having it effectively forced on them by taking away the alternative. Most would prefer to make that transition in their own way and at their own pace, rather than having it driven by the end of physical discs."
Ubisoft executive Philippe Tremblay in 2024 said that gamers should get comfortable "with not owning your game," sparking massive gamer backlash.
FAQ
When will Sony PlayStation stop producing physical discs for new games?
Sony PlayStation will end physical disc production for new games released on its consoles starting in January 2028. Boxed retail versions will contain download codes instead of discs.
What is the size of the second-hand gaming market?
Dataintelo estimates the global second-hand game platform market, including pre-owned games, consoles, accessories and peripherals, was worth $7.2 billion in 2025 and will reach $13.8 billion by 2034.
What happens to existing physical PlayStation games?
Existing physical games and titles released on disc before the January 2028 cutoff will not be affected by Sony's decision to end physical disc production for new games.
