Sony Faces $457 Million Lawsuit Over Plan to Kill Physical PS5 Discs

Sony’s decision to phase out physical PlayStation 5 game discs by January 2028 is facing legal scrutiny in the Netherlands, where a consumer rights organisation has filed a lawsuit seeking $457 million in damages.

The lawsuit was brought by Dutch group Stichting Massaschade & Consument on behalf of roughly 1.7 million PlayStation users. It argues that removing physical games could leave PlayStation owners with fewer purchasing options and higher prices, since digital downloads are sold exclusively through Sony’s PlayStation Store. The suit follows Sony’s announcement, which had already drawn criticism from players concerned about losing the second-hand market for buying and reselling games.

Andrew Ching, marketing chair at Johns Hopkins Carey Business School, told Fortune that Sony’s 30% commission applies only to digital purchases, while physical retailers pay a lower manufacturing royalty — letting used games sell cheaper as their resale value declines. He noted Sony has previously pointed to competition from physical retailers and second-hand games when responding to antitrust allegations. ‘By phasing out physical discs, Sony essentially destroys its own defense,’ Ching said, adding that price-conscious buyers would have no alternative to Sony’s digital storefront.

Sony has said roughly 85% of PlayStation game sales are already digital, framing the move as a reflection of changing consumer behaviour. But Ching pointed out the remaining 15% still represents a significant group, noting that players who resell a $60 game for around $20 effectively pay $40 to experience it — an option that disappears without physical discs. Games analyst Rhys Elliott of Alinea Analytics told GameSpot that ‘every resale and rental is value flowing to players and retailers instead of to the platform,’ arguing the shift favours Sony either way, through fresh full-price sales or lost transactions.

Ching said Sony’s move could give Microsoft an opening to court PlayStation users by reassuring Xbox owners that physical games are here to stay, though Microsoft’s gaming division is also going through changes, including a restructuring that involves roughly 3,200 job cuts.