Sony announced that it will cease manufacturing physical PlayStation discs by January 2028, a decision that could cause the destruction of the used games market, valued globally at US$7.2 billion. The Japanese company’s move, announced on Wednesday, July 22, 2026, signals a definitive transition to the digital format, with significant implications for players and retailers.
Dataintelo’s analysis shows that the second-hand market, which includes pre-owned games, console hardware, accessories and peripherals, was worth US$7.2 billion in 2025. The projection is that this value could reach US$13.8 billion by 2034. Consoles accounted for 42.3% of this segment’s revenue, highlighting the importance of physical media for the equipment resale and exchange ecosystem.
The regional impacts of the closure of record production
Sony’s decision will have global repercussions, but some markets will be more affected than others. North America was the dominant region in 2025, concentrating 36.8% of the total revenue of the used games market, equivalent to around US$2.65 billion. In the United States specifically, more than 38% of all video game transactions in the same year involved a second-hand game.
In Europe, the used games market represented approximately 28.3% of global revenue, consolidating itself as the second largest hub, with the United Kingdom, Germany, France and Nordic countries leading adoption. In Asia-Pacific, the share was around 24.6%, while Latin America, the Middle East and Africa accounted for 10.3% of this trade, with Brazil, Mexico, Saudi Arabia and South Africa showing the greatest growth. Retailers like GameStop, Amazon, eBay and Decluttr led in North America, while CEX stood out in Europe.
Why Changing Discs Directly Affects Players
Consumers’ main motivation for turning to the second-hand market has always been affordability, as physical games are often cheaper than their digital versions at launch. Furthermore, exchanging used games allows players to obtain “currency” to purchase new titles, a benefit that will disappear with the end of physical media. Sony’s decision eliminates consumer choice and also impacts enthusiasts of retro games and old hardware.
Michael Pachter, managing director of strategic planning at Wedbush Securities, stated that “realistically, at least a third of games were historically sold as used, and the games that were sold also provided currency to the player who traded them for cash to pay for new games.” He added that “physical game retail is doomed.”
The next steps for the console industry and the digital future
Although Sony’s decision mainly affects future releases, it does not interfere with existing discs in circulation. However, the move is a strong indication that the PlayStation 6, the company’s next console, will probably not have a disc reader, supporting only digital copies, even if there is backwards compatibility with PS5 games.
Kazunori Ito, director of equity research at Morningstar, expressed that the transition to digital is expected, but the way it is being imposed is problematic. “There’s an important difference between players accepting this change because they see value in it, and having it effectively forced by removing the alternative,” Ito said. “Most would prefer to make this transition in their own way and at their own pace, rather than being driven by the end of physical records.”
Microsoft, for its part, has not yet revealed whether Project Helix, its next next-generation Xbox, will also abandon the disc drive. However, there are rumors that the company is developing a way for players to digitize their physical collections, which could offer a different alternative in the future of the industry.
