End of game discs could cost industry jobs, retailer says

A video game trader says his industry faces the loss of thousands of jobs because of the phase out of physical media.

Barry Oates started reselling games back in 1995 - first in the local newspaper then from his high street shop at the turn of the millennium.

But he worries about the future of the industry after Sony announced that newly released games would only be available via digital download from January 2028.

He thinks the loss of physical discs and other media will have an impact on the culture of the hobby, making gaming less affordable and removing the community aspect he loves.

His business, Dream Consoles, is still trading online - and he hopes the income will see him through to retirement - but worries about the next generation of traders.

Oates said pre-owned game trading was the "bread and butter" of an independent game re-selling businesses like his.

He said having old and new games released was important to the "cycle" of game trading, which helped his business cover bills and balance his books.

"It's about recycling, isn't it, rather than just throwing it away?" he added.

He believes businesses like his are important, as they keep gaming affordable for gamers, especially during the cost-of-living crisis.

He said gamers often used game trading to help them to afford more expensive or newer games and consoles.

Pre-owned games can be exchanged at second-hand gaming and technology shops for newer game releases or shop credit to put towards more expensive purchases like a console.

Oates said: "It's really important to the average man in the street, their kids will want the latest [games], and they've got options.

"A £50 game or a pre-loved one."

Sony said in a blog post, new games would still be able to be bought in shops, but they would come with a digital code.

It comes just days after Rockstar announced the hotly-anticipated Grand Theft Auto VI would similarly launch without a physical disc.

It marks a significant moment for the gaming industry, which has in recent years begun to rely more and more on digital distribution.

Sony previously said the move came "as consumer preferences and the broader entertainment industry continue to shift away from physical discs to digital".

"This is a natural direction for Sony Interactive Entertainment to adapt to consumer trends as the general preference for digital media significantly outpaces physical discs," it added.

Sony has also come under criticism for pulling over 500 films and TV shows purchased on the PlayStation Store from people's collections with no compensation.

The firm said its arrangement with the film production company StudioCanal had ended, meaning it no longer had the rights to sell those TV shows and movies, and they would disappear from people's collections on 1 September.

Games traders rely on physical media to function; digital games cannot be traded with other people once they have been downloaded.

Oates said the decision made him angry and frustrated but admitted he saw the move coming from Sony.

He estimates that at least 50% of jobs linked to the gaming industry could be gradually lost because of this - specifically in distribution, retail, wholesale, warehousing, and delivery businesses.

"It's going to be massive," Oates said.

He felt that his current collection could get him through to retirement, but newer games trading businesses could struggle to source games as they become "rarer and rarer" and more expensive.

Peter Stubbings, who also works at Dream Consoles, said on the announcement: "It's scandalous, really.

"They've taken the power of what you own out of your hands."

He fears that without physical game discs, game companies could remove video games from digital console libraries, as they previously did with content purchased on the PlayStation Store.

"You sit there thinking 'I'm going to spend £80 on a game', and they can switch it off in 12 minutes, it could be removed."

When game publishers decide to switch off a game's servers, it can render some games effectively unplayable despite the content already having been purchased by a player.

Dream Consoles now includes labels on some of the physical games they sell to let customers know if they are buying a game without active servers.

"I can remember [Grand Theft Auto: San Andreas], we made five grand in one day, they were queuing out the door to get it.

"It's the excitement, it's not as exciting now, to download," added Oates.

He believes some of the gaming culture has already been "lost" due to the digital media push and the ending of physical media could make it worse.

Alex Hunt, founder of the Nottingham Games Expo, an annual retro and indie gaming event, and events manager for indie games magazine Team Debug, said: "That whole second-hand market from a certain generation up will just be gone, because those systems won't have this anymore."

He added that game sharing among friends and family and game collecting communities, some of the more social aspects of gaming, could be lost as they are based in physical media.

"It's a shame, it was always what we did as kids and stuff growing up."

Hunt specifically collects game discs and cases with unique or region-specific cover art or collector's items.

"If it all went digital, it just makes no sense and collecting them would not really be a thing."

Hunt said online backlash towards Sony had already been "enormous", particularly on Sony and PlayStation social media accounts.

"You look at every single post, it's comment after comment after comment saying 'I'm not buying this unless it's on disc'."

Some online gaming communities are taking part in a PlayStation boycott called "the PSBlackout", which was originally planned to last one week and conclude on 1 September.

However, some say they will not end the boycott until PlayStation backtrack on the decision to end the release of physical media for their consoles.

The BBC has contacted PlayStation for further comment.

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