Sony's decision to end the manufacturing of PlayStation discs by January 2028 places the global second-hand video game market, estimated to be worth $7.2 billion, in jeopardy, according to analysis by Dataintelo cited by CNBC. This move could effectively destroy the pre-owned games market, which includes physical games, consoles, accessories, and peripherals.
The analysis projects the market to grow to $13.8 billion by 2034. In 2025, consoles represented 42.3 percent of the second-hand market's revenue. North America was the leading region, accounting for 36.8 percent of this sum, an estimated $2.65 billion. In the United States alone, over 38 percent of video game transactions in the same year involved a pre-owned game.
Europe followed as the second-largest market, capturing approximately 28.3 percent of global second-hand revenue in 2025, with the UK, Germany, France, and the Nordics being major contributors. Retailers like GameStop, Amazon, eBay, and Decluttr dominated in North America, while CEX led in Europe. The Asia Pacific region held the third-largest share at an estimated 24.6 percent, with Latin America, the Middle East, and Africa combined making up 10.3 percent. Brazil, Mexico, Saudi Arabia, and South Africa showed the most significant growth within these combined regions.
While some retailers will continue to offer digital codes and vouchers, the discontinuation of physical disc manufacturing is expected to have a devastating impact. Michael Pachter, managing director of strategic planning at Wedbush Securities, stated that historically, at least one-third of games have been sold used, providing a crucial revenue stream for consumers who traded in older titles to fund new purchases. "Brick and mortar game retail is doomed," Pachter commented.
Affordability is a primary driver for consumers engaging with the second-hand market, which also caters to retro game and hardware enthusiasts. Sony's decision to eliminate physical discs removes consumer choice, leaving digital as the sole avenue for obtaining games. Reports indicate that games are consistently cheaper when purchased physically compared to digital versions.
Kazunori Ito, director of equity research at Morningstar, anticipates a continued decline in the market, potentially leading to its eventual disappearance. Ito noted a critical distinction between consumers willingly adopting a digital-only future and having that transition forced upon them by the removal of physical alternatives. "Most would prefer to make that transition in their own way and at their own pace, rather than having it driven by the end of physical discs," he said.
It is important to note that this decision affects future releases and does not impact existing discs already in circulation. However, it strongly suggests that the PlayStation 6 will likely omit a disc drive, further cementing a digital-first future for the platform. While Microsoft has not made a definitive statement regarding its next-generation Xbox, reports indicate the company is exploring options for players to digitize their existing physical game collections.