Sony has initiated plans to reassign staff at a significant disc production facility, signaling a definitive move away from physical PlayStation 5 games. The company's decision to cease the production of physical PS5 titles by January 2028 is now resulting in hundreds of employees at the Sony DADC (Digital Audio Disc Corporation) plant in Thalgau, Austria, undergoing retraining.
While Sony has stated that all new PS5 games will transition to digital-only by the target date, the immediate reallocation of staff has raised questions about whether the reduction in disc launches might occur sooner. The Thalgau factory currently produces an estimated 600,000 discs daily, with PS5 games comprising half of its total output. This volume is expected to decrease substantially, with employees shifting to the manufacturing of optical microlenses, such as those used for automotive turn signals.
Dietmar Tanzer, CEO of Sony DADC, indicated that PlayStation titles represent approximately 50 percent of the plant's current volume, with new orders making up about 20 percent of that. He anticipates this share to drop to roughly 10 percent by 2028. Despite the industry-wide discussion surrounding Sony's digital-only announcement, which has seen a mixed reception from fans and developers, data indicates a steady year-on-year decline in physical game sales.
Tanzer also confirmed that the transition to digital-only PS5 games will not lead to job losses at the Thalgau factory. The facility's approximately 300 employees will be retrained for the production of micro optics. Analysts suggest Sony's move away from physical media for the PS5 also implies no plans for disc support on the upcoming PlayStation 6. This aligns with industry speculation that the next-generation console may omit a disc drive to mitigate rising component costs, a strategy that could help Sony manage the expense of new hardware.
Piers Harding-Rolls, an analyst, noted that a disc-less PS6 could be a cost-saving measure. He proposed that Sony might offer an optional external disc drive for backward compatibility with PS4 and PS5 discs, though he acknowledged potential user dissatisfaction with such an add-on or the complexity of transferring physical game libraries to digital licenses. Similar trends are emerging with Microsoft's next-generation Xbox, codenamed Project Helix, which is also rumored to be launching without a disc drive. Microsoft is reportedly exploring a disc-to-digital feature to allow users to convert their physical game collections to digital licenses.