Sony's decision to phase out physical disc production by January 2028 is set to deliver a potentially fatal blow to the $7.2 billion second-hand video game market. The move, which the company describes as a natural direction, has drawn sharp warnings from industry analysts who say brick and mortar game retail is doomed.

What You Need to Know

The used game market is worth $7.2 billion and includes pre-owned games, consoles, and accessories. Sony's disc phaseout would eliminate the supply of new physical games, starving the resale pipeline. Analysts expect the market to keep shrinking until it disappears, though some consumers may resist the forced transition to digital.

The $7.2 Billion Market at Risk

According to market research firm Dataintelo, the global second-hand game market generated $7.2 billion in 2025. North America accounted for the largest share at 42.3 percent of revenue, followed by Europe with 28.3 percent. Consoles alone made up 42.3 percent of all sales in the pre-owned sector.

Dataintelo identifies three main drivers behind the secondary market:

  • Affordability concerns: Used games offer lower prices, making gaming accessible to budget-conscious players.
  • Retro gaming interest: Collectors and enthusiasts drive demand for older physical titles.
  • Digital-to-physical transition: Some gamers prefer owning discs over digital downloads, supporting trade-in ecosystems.

The firm projected the market could grow to $13.8 billion by 2034 if left uninterrupted. Sony's decision, however, threatens that trajectory.

Industry Reactions: A Slow Death

Michael Pachter, managing director at Wedbush Securities, offered a blunt assessment: "Brick and mortar game retail is doomed." He noted that historically at least one-third of games were sold used, and those trades provided cash for new purchases. Without a steady supply of new discs, the cycle breaks.

Kazunori Ito, director of equity research at Morningstar, described the market's fate as a gradual decline. "The market will keep shrinking and eventually disappear," Ito said. He added that while players may accept a digital shift, being forced into it by the removal of physical alternatives is a different matter. "Most would prefer to make that transition in their own way and at their own pace."

Dr. Serkan Toto, CEO of Kantan Games, explained the economic logic behind Sony's move. "Their current profit margin has been too weak for years now, so they feel like they must act," Toto said. "Digital sales just make too much sense especially for platform holders."

The PlayStation company has shown no signs of reversing course. A recent Circana report found that only seven PlayStation games sold more than 100,000 physical units year-to-date in the U.S., reinforcing the digital trend.

Why This Matters

The end of physical discs will reshape how gamers access and own content. Without a used market, consumers lose the ability to resell games, trade them in, or buy discounted copies. This shift places more control in the hands of platform holders like Sony, who already take a cut from digital sales. Small retailers that rely on pre-owned game turnover face an existential threat. Meanwhile, game preservation may suffer as digital libraries become dependent on server access and licensing agreements. The $7.2 billion secondary market, once a pillar of gaming culture, is on track to become a footnote in the industry's digital future.