Sony’s decision to abandon physical PlayStation games could be the end of the second-hand games market, claims one industry analyst.

Earlier this month, PlayStation confirmed that it will stop producing physical games from January 2028. “This is a natural direction for Sony Interactive Entertainment to adapt to consumer trends as the general preference for digital media significantly outpaces physical discs. This transition will enable us to align more closely with how most of our community prefers to access and play games today,” they explained in a short blog post. One report has claimed that just seven PlayStation games have sold more than 100,000 copies in the US this year.

However, the decision was met with backlash from gamers and creators, including Hideo Kojima who called it “scary” and frightening”, especially after Sony deleted hundreds of movies from PlayStation libraries in June after rights agreements had expired. A petition asking Sony not to “kill the disc” has more than 330,00 signatures.

A new report by industry analysts Dataintelo (via CNBC) claims the decision to kill physical PlayStation games will “doom” brick and mortar retail stores. Earlier this year, the final standalone Game stores shut down in the UK.

In fact, the entire second-hand games market (worth an estimated $7.2billion globally in 2025) could be in trouble. According to the report, more than 38 percent of all video game transactions in the US last year involved a pre-owned game and it’s a growing global market, fuelled by concerns about the growing cost of new titles and a retro revival.

“Realistically, at least one-third of games have been sold historically as used, and the games that were sold also provided currency to the gamer who traded them in as cash to pay for new games,” said Wedbush Securities managing director of strategic planning, Michael Pachter. “Brick and mortar game retail is doomed.” CEX is the largest second hand gaming retailer in Europe, while Gamestop, Amazon, eBay, and Decluttr led the market in North America

“This is an extremely anti-consumer decision that has no legitimate justification and communicates a disdain for players in their ecosystem,” Michael Futter, co-founder of video game industry consultancy F-Squared, told CNBC.

In other news, Microsoft has revived its Backwards Compatibility Program. “New tech shouldn’t mean leaving behind old games. Today Xbox is launching new tech so you can play the OG Xbox games you own, but now on PC and handhelds,” explained new boss Asha Sharma.

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