PM Studios has been a staple in the physical game publishing arena for decades. Roughly twenty years ago, the Las Vegas‑based company introduced the Korean rhythm‑action franchise DJMax to the American market, and since that milestone it has built a robust operation that turns a diverse array of titles into tangible discs and cartridges. "We probably back up a hundred or more games on a physical format each year," explained CEO Michael Yum to GamesIndustry.biz. He added that PM Studios frequently handles the physical side for numerous other publishers, noting that a single partner can generate ten new physical releases annually.
Over the years, the firm has acted as a bridge for developers seeking entry into new territories. "I had many friends in Korea who couldn't get their games out," Yum recalled.
"I started importing games from Korea and China to the US and Europe." Among those imports, one title proved to be a game‑changer: Black Myth: Wukong. Yum admits that Black Myth was initially "one of our biggest risks" when PM Studios agreed to manage its disc production, but the title's performance far exceeded expectations.
"I never imagined it would explode like that. When it took off, it was an eye‑opener – I've never witnessed anything comparable. It was so massive that it essentially "covered everything else" in our catalog. Ironically, just as PM Studios enjoys a surge in physical sales, Sony has announced that it will cease PlayStation disc manufacturing in January 2028, effectively pulling the rug out from under the business.
"It's sad and devastating," Yum said. "My first games were on PlayStation, and I'm a lifelong PlayStation fan, so physical copies have always been a big part of my life. Yet the reality is that a growing chunk of the new generation prefers digital.
My own kids, who are digital natives, get confused when I ask them to insert a disc." Despite the looming shift, PM Studios intends to keep championing physical releases wherever possible. "We're exploring fresh ways to get games into people's hands. It may eventually become a 'code in a box' model, but we want to highlight the collectibility of IPs and fan service. We'll likely produce premium bundles and unique packaging to keep the physical experience alive," he explained.
While digital sales dominate globally, Yum points out that a strong physical market still exists for titles aimed at younger audiences. The studio's release of the children's game Bluey's Quest For The Gold Pen saw roughly 80% of its revenue generated from physical copies.
He also notes that major IPs continue to perform well in brick‑and‑mortar stores, and there is a healthy demand for physical editions of indie games that have already proven successful digitally. "I handled the mass‑retail version of Lost in Cult and it sold extremely well," he said, referencing the earlier limited‑run physical of Animal Well. "Fans keep coming back for the collector's editions." Physical copies also have an economic advantage: they can be shared among family members, unlike digital licenses tied to a single account. "I have twins, so I prefer buying one disc that they can both use and lend to friends," Yum remarked.
Beyond practicality, Yum believes the backlash against the end of disc production stems from a sense of loss. "People are upset because they're being stripped of a choice," he said, even though the majority of sales now occur digitally. With the PlayStation disc era winding down, PM Studios is adapting its strategy.
"That's why you see us handling more digital titles," Yum noted. The company still backs physical releases—such as the upcoming disc version of AdHoc Studio's hit Dispatch—but it is also taking full publishing responsibilities for games like My Time at Evershine. The studio is also collaborating with Telltale on the long‑awaited sequel The Wolf Among Us 2. "I met the CEO, learned about the challenges, and offered what we could do to help," Yum said.
He emphasized that funding was the biggest hurdle and that PM Studios could provide both capital and marketing/production support to bring the game to market on schedule. Yum sees the success of Black Myth as a signal of the potential within the AA segment.
He observes that the sheer volume of titles in digital storefronts makes discovery difficult, but AA games—often boasting higher production values—tend to attract more attention. "People are a bit more excited about AA games because they look so polished," he explained. Nevertheless, PM Studios remains a staunch advocate for indie developers. "We're still championing indie projects, helping them finish and launch on platforms like Switch 2.
In fact, we were among the first to release full games on Switch 2 cards," Yum said. The plan is to leverage profits from bigger hits to fund and test new indie ventures.
He acknowledges the higher risk associated with AA projects due to larger upfront budgets, so the studio mitigates that risk by selecting titles with recognizable IPs, sequels, reputable developers, or strong wishlist data. Yum is particularly impressed by the rapid development pace of Chinese AA studios. "I've been working a lot with Chinese developers, and it's incredible—they're fast, hungry, and extremely talented.
They can produce amazing games at a speed and cost that outpaces the rest of the world. If others don’t keep up, China will dominate," he warned, citing Tencent and NetEase's growing influence. Even so, most of PM Studios' upcoming slate comes from Western creators, and the company continues to invest in physical‑game community building. Its recently launched platform Panax aims to unite collectors of physical games and merchandise.
"We've been developing Panax for years. It went viral after we posted a trophy‑tracking feature, and I’m excited for the new tools and benefits publishers will gain by joining," Yum said. Physical media may be on the decline, but PM Studios and like‑minded partners intend to keep the drumbeat alive for as long as possible, offering collectors, families, and enthusiasts a tangible way to experience video games.