Sony Reportedly Restructures Disc Factory After Announcing End of Physical Game Discs on PlayStation

Sony announced it would discontinue disc production for new games releasing on PlayStation consoles starting in 2018. The PlayStation parent has received considerable backlash since the announcement, and many hope that the company will reverse its decision in face of criticism. But it seems Sony is going ahead with its plans to end physical game disc production and has already begun restructuring its disc production factory in Austria.

Austrian publication ORF Salzburg (via The Verge) reports that major changes are underway at Sony's central production unit at Thalgau in Salzburg, Austria. The facility, which serves as the headquarters and the largest production site for Sony Digital Audio Disc Corporation (Sony DADC), the company's disc-making arm, produces 600,000 discs a day. But starting in 2028, the plant's output is going to be significantly reduced, Sony DADC CEO Dietmar Tanzer told the publication.

“PlayStation is currently about 50 percent of our volume and about 20 percent of that is new orders. We are talking about ten percent of the volume in 2028," Tanzer said.

Sony Disc Facility to be Restructured

As disc production takes a backseat, the Thalgau facility will be restructured to produce optical microlenses instead. Sony DADC management said Sony recently invested EUR 30 million into new technology for the production of microlenses at the facility.

Tanzer said the 300 employees at Sony's Thalgau plant will not be laid off as part of the restructuring. The workers, who were informed of the changes this week, will instead be retrained to produce optical microlenses. Thalgau employees have already been withdrawn from disc production as part of a test operation, the report said. Sony is said to be planning to produce microlenses as early as next year.

Sony's disc making facility at Thalgau, Austria
Photo Credit: Sony DADC

The Thalgau facility was set up in 1991 and is Sony's main site for producing physical discs for the games, video, and music markets. The Sony DADC website says the company, which primarily makes CDs, DVDs, UMDs (the now discontinued physical disc format developed for the PlayStation Portal), and Blu-ray discs, is “boldly accelerating the activities to pursue new and emerging technology fields.”

Optical microlenses are miniature lenses used to manipulate light in small spaces. They are utilised in smartphone cameras, VR headsets, among other things.

The changes afoot at the Sony plant suggest the Japanese company does not intend to back down from its decision to end physical disc production for new games. Game discs will still be produced for old and new games on PlayStation consoles until January 2028. It is unclear if Sony's plan will impact Blu-ray and compact disc production for the video and music industries.

Sony said its decision was a response to consumer preferences shifting from physical discs to digital games. As per analyst estimates, physical discs, which once were the dominant format, now account for about 20 percent of total game sales. Sony said, after January 2028, new PlayStation games will be available on PlayStation Store and at retailers in digital formats only.