Sony’s Digital-Only PS5 Plan Sparks $457 Million Lawsuit in the Netherlands

A Dutch consumer rights group has filed a $457 million lawsuit against Sony over its plan to phase out physical PlayStation 5 discs by January 2028, arguing the shift would harm consumers by removing purchasing options.

The suit, brought by Stichting Massaschade & Consument on behalf of around 1.7 million PlayStation users, centres on the fact that digital downloads are sold exclusively through Sony’s PlayStation Store. Without physical alternatives, the group argues, buyers could face higher prices and fewer choices. The legal action follows criticism from players who say ending physical discs would also eliminate their ability to resell games or buy used copies cheaply.

Andrew Ching, marketing chair at Johns Hopkins Carey Business School, told Fortune that Sony’s 30% commission applies only to digital sales — physical retailers pay a smaller manufacturing royalty instead, which is why used physical games typically cost less as their resale value falls. He pointed out that Sony has previously cited competition from physical and second-hand sales in responding to antitrust concerns, adding: ‘By phasing out physical discs, Sony essentially destroys its own defense.’

Sony says about 85% of PlayStation sales are already digital and has framed the move as reflecting how consumers already shop. Ching noted, however, that the remaining 15% is still substantial, and that resale value shapes how much gamers are willing to spend on a new title — a $60 game resold for $20 effectively costs $40 to play. Games analyst Rhys Elliott of Alinea Analytics told GameSpot that removing that resale option converts those transactions into either full-price digital sales or lost sales altogether, both of which ‘obviously suit Sony better than a thriving second-hand market.’

Ching said the backlash reflects consumers losing an option they’ve long relied on, and suggested Microsoft could use the moment to reassure Xbox users of its own continued support for physical discs — even as Xbox’s gaming division undergoes a restructuring that includes about 3,200 job cuts.