Sony has initiated the transformation of its only factory dedicated to manufacturing PlayStation discs. Just a few days ago, the company announced that it would completely cease disc production for new PlayStation games starting in January 2028, which has drawn significant criticism from the gaming community.
Sony’s Last Factory for PlayStation Discs Turns into a Lens Manufacturing Facility
A recent report from ORF Salzburg confirmed that the Thalgau factory near Salzburg has been transitioning to an entirely different business sector for several months. Previously reported by Eurogamer, Sony DADC manages global disc production and operates the last remaining plant for optical media in Thalgau.
The factory produces around 600,000 discs daily, with approximately half being PlayStation data carriers. According to Sony DADC chief Dietmar Tanzer, by 2028, only one-tenth of that production will remain.
€30 Million Investment in Micro-Lenses Instead of Discs
Sony has reportedly invested around €30 million in new manufacturing technology for optical micro-lenses. This investment aims to become the core business of the factory. Markus Streibl, who leads the Micro Optics division at Sony DADC, describes the technology as a miniaturization of optical systems that focuses and directs light in minimal space.
For instance, he cites a car signal projecting onto the asphalt as an application. Additionally, micro-lenses are utilized in camera sensors, AR and VR headsets, and fiber optic networks. Testing has already begun, with Sony aiming for mass production next year.
Why Sony is Accelerating Its Withdrawal from Discs
Currently, PlayStation titles represent about 50% of the total disc volume at Thalgau, with only around 20% being new orders, as per Tanzer. The remainder includes reprints of older games and other optical media like Blu-rays and CDs.
This shrinking new business puts the factory under pressure, as Sony will not produce new PlayStation discs for upcoming titles. A prime example is GTA 6, which will now only come with a download code in its retail box from Rockstar Games.
Furthermore, Nintendo has emerged as the last major console manufacturer still offering genuine physical game cartridges.
Timeline: What Will Happen to the 300 Employees?
Sony intends to retain the entire workforce of 300 employees in Thalgau and gradually retrain them for the new manufacturing process. According to ORF, employees were informed about the restructuring on Wednesday, and some are already involved in the testing phase for the new micro-lens production.
This factory is historically significant for Sony’s global disc manufacturing; it houses the headquarters of Sony DADC following the closure of the massive Terre Haute plant in the U.S. in 2022.
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Source: ORF Salzburg via Eurogamer / Wirtschaftskammer Salzburg

