Sony to Phase Out Disc Manufacturing, Shift to Optical Microlenses by 2028

Sony is transitioning away from disc manufacturing, with its Thalgau plant in Austria set to reduce PlayStation disc production to 10% of current levels by 2028, according to a report by ORF Salzburg. The company plans to retrain 300 employees to focus on optical microlenses, a move signaling a long-term shift from physical media to advanced optical technologies.

Thalgau Plant to Cut Disc Production by a significant margin by 2028

Sony DADC president Dietmar Tanzer confirmed to ORF Salzburg that the Thalgau plant produces 600,000 discs daily, half of which are for PlayStation. However, production is projected to drop to 10% of that volume by 2028. This follows years of declining demand for physical games, driven by the rise of digital distribution platforms like PlayStation Store.

The plant, which serves as the headquarters for Sony’s disc-making division, has already begun pivoting. A December 2024 video from the facility showed workers engaged in microlens production, a process that repurposes disc manufacturing techniques. Sony has invested €30 million in this transition, with mass production of microlenses potentially starting as early as 2025, according to ORF Salzburg.

Disc Manufacturing History and Global Shift

Sony’s disc production has declined significantly since the 1980s. The company previously manufactured discs in the U.S., including in Terre Haute, Indiana, and New Jersey. The New Jersey plant closed in 2011, and operations were consolidated to Thalgau by 2022. The Indiana facility now focuses on automotive parts, such as headlight assembly, according to Sony DADC’s website.

As of 2024, Sony DADC has produced 26.4 billion discs, with 23 billion made between 1983 and 2022 in Terre Haute. The company’s shift reflects broader industry trends, as major publishers like Electronic Arts and Activision Blizzard have increasingly prioritized digital releases over physical copies.

Optical Microlenses: Applications and Industry Implications

Optical microlenses, which Sony is now prioritizing, have diverse applications. The head of Sony’s micro optics division told ORF Salzburg that the technology could enable innovations like “a car turn signal projected onto asphalt.” While automotive use cases are speculative, microlenses are also critical for augmented reality (AR) and virtual reality (VR) devices, where precise light manipulation is essential.

The transition aligns with Sony’s broader focus on hardware innovation. The company has recently emphasized developments in imaging sensors and optical components, including its work on high-resolution displays and 3D sensing technologies. Analysts suggest the move could position Sony to capitalize on emerging markets in autonomous vehicles and AR/VR hardware.

Industry Reactions and Future Outlook

The decision has drawn mixed reactions. While some industry observers view it as a necessary adaptation to digital trends, others worry about the impact on collectors and regions with limited internet access. A 2023 survey by the Entertainment Software Association found that some gamers still prefer physical copies, though this share has declined steadily over the past decade.

Sony has not commented publicly on the transition beyond the ORF Salzburg report. However, the company’s 2024 annual report highlighted increased investments in “optical technologies and advanced manufacturing,” suggesting the shift is part of a strategic long-term plan.