Sony to end physical PlayStation game discs from 2028, repurposes Austrian factory
Sony will stop producing physical discs for new PlayStation games starting January 2028, moving to an all-digital model. The company is already converting its last remaining optical disc factory in Austria to produce microlenses.
The end of an era
Sony announced on 1 July 2026 that it will cease manufacturing physical discs for new PlayStation games after January 2028. The Japanese tech giant is the first major console maker to pull the plug on discs entirely, though rivals are expected to follow. The move formalises a shift that has been underway for years: in the quarter ending 31 March 2026, 85 per cent of Sony's game sales were digital, up from just 10 per cent in 2013, according to Ampere Analysis.
- Sony announces end of physical game disc production from January 2028
- Production of new physical PlayStation games ceases
- PlayStation 6 expected to launch without a built-in disc drive
Economic calculus
Digital distribution eliminates costs for pressing, packaging, shipping and retailer margins, making each sale more profitable. Sony can also gather user data and push personalised offers through its PlayStation Store. The decision comes as the company's stock has fallen 17 per cent this year and it has absorbed write-offs from the $3.6bn Bungie acquisition. Fatter software margins may give Sony more pricing flexibility for the next PlayStation, expected in late 2028.
- 2013
- 10 %
- 2026-03-31
- 85 %
Factory repurposing
Sony's last remaining optical disc plant, in Thalgau, Austria, currently produces 600,000 blank Blu-rays daily, about half of which are for PlayStation games. CEO Dietmar Tanzer told ORF Salzburg that PlayStation-related volume will drop to roughly 10 per cent of current levels by 2028. The company has invested €30 million to retool the facility for micro-optics, including microlenses used in automotive signalling. The 300 existing staff will be retained and retrained, according to Tanzer and Markus Streibl, head of Micro Optics at Sony DADC.
Consumer backlash and ownership fears
Gamers have reacted angrily, arguing that digital purchases are merely licences that can be revoked, eliminating the ability to lend, resell or preserve games. One user commented, "we literally own nothing now." Second-hand retailers such as GameStop in the US and CeX in the UK face a significant revenue hit. The move also means the PlayStation 6 is highly unlikely to include a disc drive, though an external drive may be sold separately for older titles.
It's a fairly dramatic decision. I'm old enough to remember when digital sales were zero percent because we didn't have a digital market!
Industry ripple effects
Former PlayStation Worldwide Studios boss Shawn Layden, who spent 32 years at the company, told Eurogamer he had no prior knowledge of the plan and does not necessarily agree with it. He suggested the decision was a spreadsheet calculation: if 80 per cent of the opportunity represents 95 per cent of revenue, the incentive to keep physical discs vanishes. Microsoft's next-generation Xbox is rumoured to also drop the disc drive, and the upcoming Grand Theft Auto 6 will be released without a physical disc. Nintendo has already flagged lower sales expectations for its Switch 2, which will cost an additional $50 in the US from September.
Companies have discovered that it is more profitable to have customers pay smaller amounts more often than a large amount at once. Moreover, they want to make it harder for consumers to switch to another company. This strategy yields so much revenue that it is worth the potential reputational damage.
