Sega Won’t Ditch Physical Media, But Says Digital Expansion Is Vital

No one really loves Sony's decision to kill physical PlayStation discs in January 2028, but there is data that backs up the company's plan. Sega's president understands the choice and the numbers, but he says the company remains committed to producing physical media despite the push to an all-digital future.

In a recent interview with Famitsu (that was translated by Eurogamer), Sega president Shuji Utsumi spoke about how the company needs to be "more digitally conscious and become more global." For Sega, "digitalization" is an important part of the company's business going forward.

"When it comes to titles we call 'full games' for consoles and PCs, we believe that a digital shift is crucial," Utsumi told Famitsu. "Of course, consoles are important, but the proportion of people who play on PCs is steadily increasing. Even in areas where consoles are not widely available, there are many people who say, 'I can play it on PC.' In order to cultivate that market, we believe it is important to strengthen our digitalization."

In admitting that an all-digital future is seemingly inevitable, Utsumi acknowledged that physical media is still a vital aspect of the games industry and something he hopes Sega can balance.

"We were originally a platform provider, and of course, we still value the culture of physical media," Utsumi continued. "Rather than completely abandoning that, we are currently challenging ourselves to shift so that we can think about and act on the important aspects of digital media in parallel."

This is a somewhat stark contrast to what Ubisoft CEO Yves Guillemot recently said about Sony's decision. In a recent VGC interview, Guillemot remarked that the end of PlayStation disc production won't "disturb" the industry too much.

The industry this decision will impact, though, is brick-and-mortar stores. Although GameStop's Ryan Cohen isn't concerned with the impact of Sony sunsetting physical PlayStation discs, an analyst believes game retail stores are doomed. The decision has riled up hundreds of thousands of people to sign a petition urging Sony to reverse course.