The announced production halt for physical PlayStation discs from January 2028 is now a matter of concern for British politicians. A member of parliament is calling for an official investigation by the domestic competition authorities, fearing an abuse of a dominant market position.
The push from Westminster
Cameron Thomas MP, Member of the British House of Commons, has the Economics Minister according to message Sony Interactive Entertainment contacted the relevant authorities to have the compatibility of its plans with the Competition Act 1998 and the Enterprise Act 2002 reviewed. This move follows an earlier attempt by Sony Interactive Entertainment to lobby the authorities, which was rejected.
At the heart of the criticism is the end of freedom of choice when buying games. If, from 2028 onwards, retail stores only offer empty plastic cases containing download codes, the traditional retail chain will collapse. Customers will no longer acquire physical ownership, but merely a digital license that can be revoked at any time. This carries risks, but has been standard practice for years. Only one format is disappearing, not the way in which the license is granted.
The end of the secondhand market is looming.
According to Thomas, the abolition of optical media will effectively shut down the entire used game market. Without physical discs, there will be no second-hand trade, no lending among friends, and no real price alternatives to the PlayStation Store. The digital marketplace will become a closed system. Sony and the publishers will then dictate prices unilaterally.
Particularly low-income families who rely on affordable, used software are systematically excluded by the elimination of the physical market. Economic pressure on gamers increases the manufacturer's profit margin. Pure economics. The UK's Competition and Markets Authority (CMA) will likely only monitor the development for the time being, as any concrete market impact before 2028 is purely hypothetical.
Realistically, the initiative is likely to achieve one thing above all: it will land on the desk of the British government. A formal response from the Department for Business and Trade will probably follow, stating that existing competition laws are sufficient and that the situation is being monitored. Equally likely is a referral to the independent Competition and Markets Authority (CMA), which alone decides whether to launch an investigation – politicians can initiate a review, but not order one.
Too early to take action.
It is currently too early for a formal market investigation anyway. Sony's disc phase-out doesn't take effect until 2028, and there are no concrete effects on prices or competition yet. However, parliamentary debates or hearings are conceivable, in which Sony, retailers, and consumer protection groups would have to present their positions.
Only if Sony actually exploits its new market position – for example through significantly higher prices, fewer discounts in the PlayStation Store, dynamic pricing or further isolation of its own ecosystem – is a political warning likely to turn into an antitrust case.
That's precisely why this letter is less an attack on Sony and more a public warning that currently lacks any practical application. Should developments move in this direction, no one can later claim they didn't warn them.
This means that political letters won't change anything about the digital master plan, especially not about fictional scenarios. Sony is pushing ahead with the disc phase-out because the digital margin, thanks to the 30 percent platform commission, is simply more profitable than pressing Blu-rays. For gamers, this means from 2028 onwards: take it or leave it. Price wars in stores will be a thing of the past.
No disc better play
I maintain that a large part of Sony's success (Sony Germany & Austria, PlayStation Europe) is the visible aspect of the games in stores!
Yesterday at Müller's, someone bought six new games, and a few teenagers were looking at some games. Their mother then said, "Yeah, we'll check the PSN Store later to see what's available." The real draw, though, was the physical presence of the games. I bought two titles myself. 😉
The Xbox started losing ground when its physical game market, compared to the PSX, steadily shrank. Disc games also serve as local advertising.