Losing Physical PS5 Games Also Means Losing the Resale Market, Gamers Warn

Sony’s plan to end physical PlayStation 5 discs by January 2028 has run into a $457 million lawsuit in the Netherlands, with critics warning the move would wipe out the resale market gamers have long relied on.

The lawsuit, filed by consumer group Stichting Massaschade & Consument on behalf of about 1.7 million PlayStation users, argues that without physical discs, digital downloads sold exclusively through Sony’s PlayStation Store would leave buyers with fewer options and higher prices. It follows criticism from players after Sony’s original announcement, many pointing out that physical games also allow reselling and buying used copies at lower prices.

Speaking to Fortune, Andrew Ching, marketing chair at Johns Hopkins Carey Business School, explained that Sony’s 30% commission applies only to digital purchases, while physical retailers pay a lower manufacturing royalty — a structure that lets used games sell cheaper as their resale value falls. He noted Sony has previously pointed to competition from physical and second-hand sales when defending itself against antitrust allegations, adding that ‘by phasing out physical discs, Sony essentially destroys its own defense.’

Sony says around 85% of PlayStation sales are already digital, describing the shift as consistent with how most players already buy games. But Ching said the remaining 15% is still significant, and that resale value affects how much gamers are willing to pay upfront — reselling a $60 game for $20 effectively brings its cost down to $40. Games analyst Rhys Elliott of Alinea Analytics told GameSpot that eliminating that resale value pushes buyers toward full-price digital purchases instead, an outcome that ‘obviously suits Sony better than a thriving second-hand market.’

Ching said the reaction goes beyond pricing, reflecting consumers’ discomfort at losing a purchasing option, and suggested Microsoft could use the opportunity to court PlayStation users by reaffirming Xbox’s commitment to physical discs — even as its own gaming division works through a restructuring involving roughly 3,200 job cuts.