PlayStation's Decision – The End of Ownership?
There are 3.42 billion 'video gamers' worldwide, and most of them would tell you of their happy memories that surround gaming. Whether you were gifted a game you really wanted for Christmas, queuing outside a game store on a release day, or finally getting that new game you had been saving up for months for as a kid, pretty much everyone who has played games at some point has experienced the joy of opening a new game for the first time and putting it into your console.
Sony, the owner of the popular PlayStation brand, announced on the 1st of July that physical media is to be a thing of the past, starting in January 2028. In a dual statement dripping with unintentional irony, PlayStation announced that they would stop production of all physical discs for their consoles and be moving to an all-digital ecosystem, whilst simultaneously announcing the closure of the PlayStation 3 and PlayStation Vita online stores. This came mere days after Sony removed over 550 movies from their current storefront, permanently taking them away from those who had previously bought them with no refund or prior warning, citing 'content licensing agreements' expiring.
For Sony, this decision makes perfect sense – an all-digital future means that they no longer have the costs associated with production of physical discs, cases, artwork, etc., don't have to split revenue from each sale with a retailer like Amazon, and can control the price of games throughout their entire lifespan, all whilst ensuring that they eliminate one of the biggest sources of 'lost revenue' for them: second hand games. Digital games are tied to one PlayStation account, and so once bought, cannot be sold, shared or loaned – if you want to experience a digital-only game, you have to buy it from Sony, directly or indirectly. Physical games, however, only necessitate a disc or cartridge. This means that once someone is done with a game, they can give it to a friend, sell it, either via online marketplaces like eBay, or keep it forever. With any of these options, Sony doesn't get money outside of the initial purchase, and sees it as a 'lost sale'. Each used game bought is a new game not bought, in essence. An all-digital future completely undercuts this massive chunk of the videogame market.
The decision has raised many questions and concerns from consumers, associations and regulatory bodies alike. With a physical game, in most instances, a consumer owns that copy of the game, and can play it 10, 15, 20 years after purchase. Games released for the Nintendo Entertainment System (NES) in the '80s can still be played on an NES now. With a digital game, the publishing company can decide to revoke access whenever they want, just as Sony did with the 551 movies earlier this month. No refund or compensation given. Consumers therefore are worried about the preservation of these games. Whilst they may be available and playable now, the idea that they could just disappear whenever the publishing company wants is concerning. Additionally, once the storefronts are closed, if not available elsewhere, those digital games cannot be bought ever again – hence the irony of announcing the closure of the PS3 and Vita stores at the same time.
There are also questions being raised over the legality of the move. At the moment, a consumer has the right to choose where they buy their games from: do they want a new physical game from Argos, a used game from CeX, or a digital version from the PlayStation Store? By removing discs, Sony is essentially forcing consumers to use their digital storefront and be at the mercy of potentially predatory pricing structures. Unlike a PC, which has multiple digital storefronts to use, the PlayStation Store is the only way to purchase or redeem digital games on PlayStation; by removing the option of physical media, Sony (who already holds at least an oligopoly over console gaming) is cementing their market dominance.
The EU has strict guidelines on digital monopolies, and a few years ago forced Apple into allowing 'sideloading' of apps onto their devices (installing apps via the internet without using the App Store) over concerns that they held a monopoly. Consequently, there have been calls for the EU to try to force Sony to either reverse their decision or follow similar processes as Apple. The EU has become increasingly more involved in the gaming sector, as they debated the 'Stop Killing Games' movement, a backlash against the permanent closure of online games with no offline modes. Despite this, the EU has admitted to being unable to force Sony to keep physical discs, as "companies are free to offer games and services in the manner that they see fit".
The move has also drawn criticism from the UK's Entertainment and Retail Association (ERA), who claim that the move is not only anti-consumer, but "a triumph of corporate convenience over consumer choice", adding that removing discs does not represent progress.
Whichever way you look at it, Sony's decision ultimately removes consumer choice and harms retailers, whilst bolstering their own profits and consumer reliance on their proprietary storefront. The decision has sparked significant backlash, and represents a growing movement within corporate circles to remove consumer options and ownership of digital products to their own benefit.