PM Studios has been a veteran in the realm of physical game publishing for decades. Roughly twenty years ago, the Las Vegas‑based firm introduced the Korean rhythm‑action series DJMax to North America, and since that early venture it has built a robust operation that transforms a broad spectrum of titles into discs and cartridges for retail shelves. "We probably back up a hundred or more games on a physical medium each year," explains CEO Michael Yum to GamesIndustry.biz.
He adds that the company handles the physical side for many other publishers, noting that a single partner can generate ten or more titles annually. Over the years, PM Studios has acted as a bridge for developers seeking to reach new territories. "I had a lot of friends in Korea who couldn’t get their games out," Yum says. "So I started importing games from Korea and China into the U.S.
and Europe." One of those imports turned out to be a game with a disproportionate impact: Black Myth: Wukong. Yum admits that the title was initially viewed as "one of our biggest risks" when PM Studios agreed to manage its physical distribution, yet the outcome far exceeded his expectations. "I didn’t anticipate it would become that massive.
When it blew up, it was an eye‑opening experience – I’ve never seen anything like it. It essentially paid for everything else we do." Ironically, just as PM Studios is riding a wave of success in physical publishing, Sony has announced that it will cease production of PlayStation discs in January 2028, effectively pulling the rug out from under the business model. "It’s sad and devastating," Yum says. "My first games were on PlayStation, and I’m a lifelong PlayStation player, so I’ve always bought a lot of physical copies.
But the truth is, a growing number of gamers, especially the younger generation, are buying digital copies. My own kids – who grew up with digital‑first experiences – get confused when I hand them a disc." Despite the looming end of PlayStation discs, PM Studios intends to keep supporting physical releases as best it can. "We’re exploring new ways to bring games to market.
Eventually it may be a code in a box, but we want to highlight the collectibility of the IPs and provide fan‑service. We’ll likely produce premium bundles, high‑quality packaging, and other unique options to keep the physical format alive," he explains.
Even though digital sales dominate the global market, Yum points out that there remains a strong demand for physical copies among younger audiences. PM Studios handled the children’s title Bluey’s Quest For The Gold Pen, and about 80 % of its revenue came from physical sales. He also notes that major IPs continue to perform well in brick‑and‑mortar stores, and that indie games which have proven themselves digitally can also thrive in a physical format.
"I did a mass‑retail version of Lost in Cult and it sold extremely well," he says, referencing the limited‑edition physical release of Animal Well that had already been offered by Limited Run. "Fans return for the physical version; collectors love it." There is also an economic advantage to a disc that can be shared among multiple players, something Yum experiences personally. "I have twins, so I don’t want to buy two digital copies. I buy one disc, they share it, and they can lend it to friends," he says.
Beyond practicality, Yum believes the backlash against the end of discs stems from a sense of loss. "People are upset because you’re taking away a choice," he says. "Even if most sales are digital, many gamers still value the tactile experience and the sense of ownership that a physical product provides." With the PlayStation disc era winding down, PM Studios is adapting its strategy.
"That’s why you see us handling more digital titles now," Yum remarks. The company remains committed to physical releases – it is backing an upcoming disc version of AdHoc Studio’s hit Dispatch – while also expanding into full publishing duties for games such as My Time at Evershine.
PM Studios is also collaborating with Telltale on the long‑awaited sequel The Wolf Among Us 2. "I met the CEO, learned about the challenges they faced, and offered to help," says Yum. "The biggest need was funding, so I pledged investment, marketing support, and production resources to get the game finished on schedule." PM Studios isn’t the only publisher scrambling to adjust to a disc‑free future.
Singapore‑based GCL Global Holdings, originally built around physical distribution, is now betting on AA publishing through its subsidiary 4Divinity, which recently made a splash at Gamescom. The success of Black Myth: Wukong has convinced Yum that AA titles hold great promise. He observes that the sheer volume of games in digital storefronts makes it difficult for individual titles to stand out, yet consumers are increasingly drawn to AA games because of their high‑quality graphics and production values. "I want every game to succeed, especially indie projects, but when you put a trailer out there, people gravitate toward the flashier, higher‑budget experiences.
That naturally attracts more attention." Nevertheless, Yum insists that PM Studios will not abandon indie developers. The publisher continues to champion indie releases, helping them finish development and launch on platforms such as Switch 2. In fact, PM Studios was among the first to ship full games on the Switch 2 cartridge. "We hope the profits from bigger hits can fund new indie experiments," he says.
AA games do carry higher upfront risk due to larger budgets, so PM Studios mitigates that risk by selecting projects with proven elements: an established IP, a sequel, a reputable developer, or strong wishlist data. "We look for anything that reduces uncertainty," Yum explains. Yum is particularly impressed by the surge of AA titles emerging from China.
He praises Chinese development teams for their speed, hunger, and talent. "They can produce amazing games incredibly fast and at lower cost than anyone else. If the rest of the world doesn’t keep up, they’ll dominate the market.
Tencent and NetEase already control a massive share of the industry, so we’re already feeling that pressure." Even though Chinese AA games are a focus, most of PM Studios’ upcoming slate still comes from Western developers. The company also remains steadfast about physical media, having launched a community platform called Panax to unite collectors of physical games and merchandise.
"We’ve been building it for years," says Yum. "It went viral after we posted a trophy‑tracking feature. I can’t wait for everyone to see the new tools and the benefits publishers will gain by joining the platform." Physical games may be on the decline, but there are still passionate advocates who will champion the format to the very end.