When games are only available digitally, this primarily affects the used market. For many players, this means a financial loss. In the past, it was easy to sell off played or completed games and use the money to buy new titles. Many will now think twice about purchasing a potential flop digitally, without being able to return it.
Sony has consciously decided to abolish the physical disc for the PlayStation. A decision that does not go without consequences.
Experts and consultants warn that this could also have long-term effects on the market: players can no longer trade/exchange used games and acquire other new games instead. This could ultimately mean a billion-dollar loss for gamers. After all, there is a huge business behind used games.
Used games are a huge market, especially in a time of rising prices
The consulting and market research company “DataIntelo” states in a report that the global market for used video games is estimated to reach 7.2 billion US dollars by 2025. This includes not only PlayStation games but also other game consoles.
Especially in a time when video games are becoming more expensive and now cost 80 euros, while overall costs are rising, the used market is becoming increasingly important for many price-conscious customers. Especially young people tend to be much more price-sensitive here.
Abolishing the disc is a risk: Michael Pachter, Managing Director for Strategic Planning at Wedbush Securities, stated to CNBC that while Sony will save some money with this step, as online margins are higher than in brick-and-mortar retail, players are still unlikely to buy more games. After all, used games are also always seen as a kind of payment method:
Realistically, in the past at least one-third of all games were sold used, and the used games served the players who traded them in as a means of payment to finance new games. The retail game trade is doomed.
The advantage of used titles is that you can also resell a game that you do not like to purchase a better game with the money. In the future, many players will likely consider carefully whether to buy a flop digitally, which they can no longer resell to at least limit their financial loss.
The abolition of the disc for the PlayStation ends exactly this option, as a used market is no longer possible with digital titles. You cannot pass on a code. However, you can pass on a purchased disc. This means that gamers are losing a potential billion-dollar business.
Sony has, by the way, issued strict guidelines for its employees. This was likely a conscious decision once it became clear that the end of the disc could lead to a shitstorm. What is certain is that no official comment has been made about the end of the disc. Sony’s strict ban seems to be having an effect: Sony has apparently issued a strict ban on employees following the decision to eliminate discs
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