Sony to end physical game disc production for new releases by 2028, sparking gamer backlash

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, and that was it. But it was viewed as more than just a simple instruction, it was seen as a dig at rival Microsoft Xbox's strict game-sharing policies.

"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.

Now, in the eyes of some, Sony is becoming the very villain it mocked.

PlayStation has announced it will end physical disc production for new games released on its consoles starting in January 2028, making new releases digital-only.

Boxed retail versions, if they are sold, will contain a download code rather than a disc.

One of the first games that will use this model is reportedly Take-Two Interactive's highly anticipated Grand Theft Auto 6, published by Rockstar Games and slated for release this year.

The economics are in Sony's favor. By selling more games digitally, the company has less need to manufacture physical boxes, and physical discs are eliminated completely, improving profit margins.

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.

Without physical discs, gamers lose the ability to buy cheaper used games or recoup money from games they have finished. The change will give Sony a tighter grip on where games are sold, when they are discounted and how long consumers can access them.

"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.

On YouTube, gamers resurfaced Sony's old clips with bitter comments: "This is like watching the wedding video after the divorce," one wrote. "Oh, how the mighty have fallen," wrote another.

Existing physical games, and titles released on disc before the cutoff, will not be affected.

"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.

For Futter, the issue is that consoles are closed ecosystems, controlled by the platform holder. On PC, 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.

"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."

Sony and Playstation did not respond to CNBC's queries for comment.

Resale market 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 Patcher said. "Brick and mortar game retail is doomed."

While older games can still circulate even after disc production ceases, that's not possible with digital ones.

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.

However, Sony's defenders might argue that the market has changed since 2013. 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.

Sony said in its announcement that the decision was a "natural direction for Sony Interactive Entertainment to adapt to consumer trends as the general preference for digital media significantly outpaces physical discs."

Ubisoft executive Philippe Tremblay in 2024 said that gamers should get comfortable "with not owning your game," sparking massive gamer backlash.

Sony also recently 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.

Still, some were wary of what this step could lead to eventually.

"What's to stop PlayStation from taking the same actions with games we've purchased?" Futter posited.

Ito expressed concern also.

"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," he said.

"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," he added.