If the plan turns out to be true, each game for Sony's next-generation console will be sold with an individual licence which will make it illegal for anyone to sell or buy a second-hand game.
In effect the consumer will not own the game they've purchased, only the licence to play it. The software will remain the property of Sony.
This would put an end to the sale of used games on sites such as eBay or Amazon. Some reports suggest that Sony has already told UK retailers not to sell second-hand PS3 games, although Sony denies this.
Sony would profit from individual coding by forcing more full-price sales. However, games industry analysts warn that a backlash could be catastrophic for the electronics giant.
Games website Ferrago warned that it would be "nigh on impossible for those who cannot afford full-price games to invest in the PlayStation 3".
The PS3 already faces stiff competition from Microsoft's Xbox 360 and Nintendo's upcoming Wii, and Ferrago warns that "the individual coding scandal" may add to "a mounting catalogue of black marks against Sony's reputation".
Microsoft sold an estimated 1.3 million Xbox 360 consoles in its first month.
Sony has refused to comment on the licensing rumours. The company said in a statement: "We have made all of the official announcements at E3. We will be announcing more news running up to PlayStation 3's launch."
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