- Dataintelo reports that the used video game market is worth $7.2 billion
- The firm thinks that Sony's decision to end the production of discs will cause it to decline
- Analysts say the market will "keep shrinking and eventually disappear"
The second-hand video game market could be in danger as a result of Sony's decision to end production of physical discs starting in January 2028.
A new story from CNBC included analysis from market research firm Dataintelo, which reported that the used game market was worth $7.2 billion in 2025 and predicted it could grow to $13.8 billion by 2034.
The figure represents all pre-owned games, console hardware, accessories, and peripherals, but consoles account for 42.3% of revenue, with North America being the biggest part of the market. That's compared to Europe, which captured 28.3% of global second-hand revenue last year.
The company explained that the second-hand game market is fuelled mainly by affordability concerns, an interest in retro gaming, and a "digital-to-physical gaming transition."
With Sony's plan to phase out discs in just two years, there's now a threat to the used game market.
"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."
However, physical discs and the second-hand market aren't likely to disappear all at once. Kazunori Ito, director of equity research at Morningstar, explained that the market will "keep shrinking and eventually disappear."
"There is an important difference between players accepting that shift because they see value in it, and having it effectively forced on them by taking away the alternative," Ito said.
"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."
In Sony's announcement earlier this month, it called it a "natural direction" for the company, arguing that the transition from physical to digital discs "will enable us to align more closely with how most of our community prefers to access and play games today."
While fans continue to push back against the decision, analysts have determined that the PlayStation company won't change its mind.
"Their current profit margin has been too weak for years now, so they feel like they must act," explained Dr. Serkan Toto, CEO of Japanese game industry consultancy firm Kantan Games. "From an economic perspective, digital sales just make too much sense especially for platform holders."
A recent report from Circana senior director and video game industry advisor Mat Piscatella also suggested that the digital market is in Sony's favor right now, explaining that only seven PlayStation games "have sold more than 100,000 physical units year-to-date" in the US.
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