Analyst: Sony to phase out physical game discs, used game market at risk

Tech giant Sony has announced it will stop producing physical discs for new PlayStation games from January 2028. The decision, reflecting a broader shift towards digital downloads, has led analysts to predict a significant contraction and potential demise of the used game market.

For decades, the used game market has provided a way for players to recoup costs from old titles or reduce spending on new ones. While digital downloads are now prevalent, the trade in pre-owned games has maintained a substantial scale. The global used game market was valued at approximately $7.2 billion in 2025 and is projected to grow to $13.8 billion by 2034.

Industry analysts have expressed pessimism about the market's future. Kazunori Ito of Morningstar believes the used game market will "continuously shrink and eventually disappear." Michael Pachter of Wedbush Securities stated that physical game retail is "doomed to end," noting that historically, at least one-third of game sales originated from pre-owned transactions.

Sony cites evolving consumer purchasing habits as the reason for the transition to digital. The company asserts that digital content has surpassed physical discs as the primary choice for players. Market data supports this trend, with physical PlayStation game sales declining. In the US, for instance, only a few PlayStation titles have sold over 100,000 physical copies year-to-date.

However, the decision has prompted backlash from some players and industry groups. Online petitions have surfaced, and concerns about game preservation and ownership have been voiced on social media. Groups like the UK's Digital Entertainment and Retail Association (ERA) view the move as prioritizing corporate convenience over consumer choice. Sony, however, is likely to proceed, citing the higher profitability of digital sales and shifting consumer preferences.