Experts Warn Sony’s Move Away From Physical Discs Could Hit Game Retail Hard

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Sony’s decision to end large-scale production of physical PlayStation game discs in January 2028 is expected to have consequences beyond players, with industry experts warning that traditional game retailers and the second-hand market could face significant challenges.

While digital game sales have steadily grown over the past decade, physical copies continue to account for millions of PlayStation game sales worldwide. According to Chris Dring of The Game Business, Sony’s decision comes as a surprise despite the ongoing shift toward digital distribution:

“PlayStation games do sell well at physical retail. It’s a smaller part of the business than digital, of course, but we’re still talking millions of sales worldwide. So the news surprises me. From a retail perspective, it’s clearly a blow.”

Dring believes retailers may increasingly rely on selling digital download codes, similar to the approach being taken with Grand Theft Auto VI, giving consumers alternative places to purchase digital games outside the PlayStation Store.

However, Rhys Elliot of Alinea Analytics argues that code-in-a-box releases cannot replace traditional physical games because they remove the features that made boxed copies appealing:

“A code-in-box has none of the things that made physical worth choosing: no resale value, no lending, less collectability. The physical channel has no reason to exist.”

The biggest casualty could be the pre-owned games market, which has long provided retailers with higher profit margins than new releases. Piers Harding-Rolls of Ampere Analytics agrees that Sony’s move will further weaken second-hand game sales but believes it could also encourage retailers to innovate by expanding digital sales and finding new business models.

As the industry moves toward an increasingly digital future, Sony’s decision may reshape not only how players buy games but also the role that game retailers play in the years ahead.