Sony Ex-Boss Reveals Real Reason Why PlayStation 5 is Killing Discs

Sony’s decision to stop producing physical PlayStation games appears to come down to a simple financial calculation.

Former PlayStation executive Shawn Layden said digital purchases now represent around 80% of the market but generate roughly 95% of revenue, leaving the remaining physical audience responsible for only about 5% of the business.

Layden questioned what incentive Sony would have to continue operating disc-production infrastructure for the 20% of customers contributing such a small share of revenue. His comments help explain why the company is unlikely to reverse its decision despite a growing backlash from players.

Disc Production Ends in 2028

Sony Interactive Entertainment will stop producing physical discs for all new PlayStation games from January 2028.

After that date, newly released games will only be available digitally through the PlayStation Store and digital products sold by retailers. Games already released on disc, along with titles scheduled to receive physical editions before January 2028, will not be affected.

Sony said digital media now significantly outpaces physical discs and that the change reflects how most PlayStation customers access games.

The decision also points towards a digital-only future for PlayStation software during the next console generation. However, Sony has not announced the PlayStation 6 hardware or confirmed whether it will offer any form of optional disc support.

Fans Push Back

Physical game buyers have responded with widespread criticism because discs allow them to lend, trade, resell and preserve games without depending entirely on Sony’s digital storefront.

Users posted thousands of complaints across social media, including under unrelated posts from Sony’s official account.

Several Change.org campaigns have also appeared. The largest was started by Canadian game retailer PNP Games and approached 30,000 signatures shortly after Sony’s announcement. The petition asks the company to continue supporting disc-based PlayStation games beyond 2028.

Despite the response, evidence from Sony’s manufacturing operations indicates that preparations for the transition are already well underway.

Factory Already Being Retooled

Sony’s disc-production facility in Thalgau, Austria, will be heavily affected by the decision.

Sony DADC CEO Dietmar Tanzer said PlayStation currently represents around half of the plant’s production volume. However, new PlayStation orders make up approximately 20% of that amount, meaning the discontinued work will represent roughly 10% of the plant’s total volume by 2028.

Sony currently has no plans to lay off the plant’s 300 employees. Instead, workers are being retrained to manufacture optical microlenses, with large-scale production expected to begin in early 2027.

The retooling suggests that Sony planned the move away from physical games well before publicly announcing it, making a reversal increasingly unlikely.

A Spreadsheet Decision

Layden said he did not necessarily support ending physical releases but believed Sony had made what he called a straightforward spreadsheet decision.

Companies usually discontinue a product or feature after comparing its costs with the revenue it generates. In PlayStation’s case, digital sales have grown from virtually nothing to more than 80% of purchases.

Layden said Sony had discussed removing disc drives throughout his two decades at the company. His main concern was whether broadband access had become fast and widespread enough for most customers to download full games reliably.

With digital customers now reportedly generating about 95% of revenue, maintaining manufacturing and distribution operations for the smaller physical market became increasingly difficult to justify.

Used Games Not The Main Reason

Hardware leaker KeplerL2 suggested that ending physical releases could help Sony reduce used-game sales, increase average software revenue and offset rising costs associated with its next console.

Layden, however, does not believe the second-hand market was the primary reason behind the decision.

He said used sales once played a major role in gaming retail, particularly for companies such as GameStop. However, the growth of digital distribution has already reduced that market to a point where it is no longer financially significant enough to drive Sony’s decision.

Ownership Concerns Remain

The move has raised broader concerns about consumer rights and game preservation.

Unlike discs, digital games cannot be resold or lent independently. Access also remains tied to an account, platform, and storefront controlled by Sony. If a game is removed, licensing terms change, or online services eventually close, customers have fewer options for accessing or preserving their purchases.

Developers and publishers have also criticized the decision, arguing that physical editions remain important for collectors, historical preservation, and the long-term availability of games.

However, with digital users reportedly producing 95% of PlayStation revenue and Sony already converting its manufacturing facilities for other products, the financial case for keeping physical games appears increasingly weak.