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Sony begins restructuring PlayStation disc factory for optical microlenses

Sony has provided clear signs that it will not reverse its decision to end physical media production for PlayStation. According to a report by Austrian outlet ORF Salzburg, the corporation has already initiated the restructuring process for its last wholly-owned factory dedicated to pressing console discs.

Sony begins restructuring PlayStation disc factory
Sony begins restructuring PlayStation disc factory

The factory, located in Thalgau, Austria, will be repurposed to manufacture optical microlenses, which are specialized components used in devices that require precise control of light.

Impact on employees and daily output

Despite the massive shift in operations, the 300 people currently employed at the Sony Thalgau plant will retain their jobs. Instead of being laid off, the workers are being transitioned to other activities within the facility.

  • Current Demand: Dietmar Tanzer, CEO of DADC (the company that manufactures PlayStation games, Blu-rays, and CDs for Sony), stated that console games currently make up 50% of the local production demand.
  • Daily Output: The factory currently manufactures an average of 600,000 discs daily, though this volume is expected to decline rapidly.
  • Future Projections: While DADC will continue to produce physical media beyond 2028, it anticipates a severe drop in demand. Tanzer explained that once PlayStation officially ends its physical media lifecycle, the factory’s disc production is expected to plummet to just 10% of its current output.

Long-term planning and new machinery

The transition away from console discs is not a sudden move; Sony has been planning the change for some time.

Financial Investment: A few months ago, the corporation invested approximately US$ 30 million in new equipment for the Thalgau plants to shift the focus of its operations.

Employees at the facility began testing the new machinery on Wednesday, July 1, and will receive updated training to handle the production of microlenses. Sony views this as a highly promising market, noting that these optical components can be utilized in a wide variety of distinct products, ranging from headphones to automobiles.

Public backlash and market outlook

Sony’s decision to phase out physical media has drawn sharp criticism from the general public and several of its business partners. For many industry analysts, the move represents an attempt by the company to consolidate its market power, which they predict will ultimately result in more expensive video games and fewer promotional sales.

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