PM Studios has been a veteran in the realm of physical game publishing for decades. Roughly twenty years ago, the Las Vegas‑based company introduced the Korean rhythm‑action series DJMax to the North American market, and from that point on it built a robust operation by pressing a wide variety of titles onto discs and cartridges. "We probably back up a hundred or more games on the physical side each year," explains CEO Michael Yum to GamesIndustry.biz. He adds that the firm handles most of the physical distribution for a host of other publishers.
"When you sign one of those partners, you can end up with ten titles a year from just that one company." Over the years, PM Studios has acted as a bridge for developers seeking to launch their products in new territories. "I had a lot of friends in Korea who couldn’t get their games out," Yum recalls. "So I started bringing games from Korea and China over to the U.S. and Europe." Among those imports, one title proved to be a game‑changer: Black Myth: Wukong.
Yum admits that the studio initially treated Black Myth as "one of our biggest risks" when it agreed to handle the physical release, but the result far exceeded his expectations. "I had no idea it would become that massive. When it blew up, it was an eye‑opening experience – I’ve never seen anything like it.
That single title ended up covering everything else we were doing." Ironically, just as PM Studios was riding a wave of success in its physical publishing division, Sony announced that it will cease production of PlayStation discs in January 2028, effectively pulling the rug out from under the business. "It’s sad and devastating," says Yum. "My first games were on PlayStation, and I’m a lifelong PlayStation player, so I grew up with physical copies. But the reality is that a large portion of the new generation buys digitally.
My own kids, who are digital natives, get confused when I ask them to put a disc in the console." Nevertheless, PM Studios plans to keep supporting physical releases as best it can. "We’re exploring new ways to get games out there.
Eventually it may just be a code in a box, but we want to highlight the collectibility of the IPs and provide fan service. We’ll probably produce premium bundles, high‑quality packaging, and other unique solutions to keep the physical format alive." Even though digital sales now dominate the global market, Yum points out that there remains a strong demand for physical copies among younger audiences. PM Studios published the children’s title Bluey’s Quest for the Gold Pen, and about 80 % of its sales were physical copies.
He notes that established IPs continue to perform well at retail, and there is a healthy niche for physical editions of indie games that have already proven themselves digitally, such as Animal Well. "I did the mass‑retail version of Lost in Cult and it sold extremely well," he says, adding that a limited‑run physical edition of Animal Well had already been released through Limited Run. "Fans return to buy the physical version; collectors love it." A practical advantage of a disc is its shareability.
"I have twins, so I don’t want to purchase two digital copies. I buy one disc, they learn to share it and lend it to friends," Yum explains. 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, even if most sales are digital now." With the clock ticking on PlayStation disc releases, PM Studios is adapting its strategy.
"That’s why you’ll see us handling more digital titles," says Yum. The company still champions physical releases – it is backing the upcoming physical version of AdHoc Studio’s hit Dispatch – while also taking on full publishing duties 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 they faced, and offered what we could do to help," Yum recounts. "The biggest hurdle was funding. I said we could invest, bring in our marketing team and production operations to get the game finished on schedule." Looking ahead, PM Studios aims to "take bigger risks on bigger IPs". PM Studios isn’t the only company scrambling to adjust to the decline of physical media.
Singapore‑based GCL Global Holdings, originally built around physical distribution, is now betting on AA publishing through its 4Divinity subsidiary, which made a splash at Gamescom. Inspired by Black Myth’s success, Yum sees great potential in the AA segment. He observes that the sheer volume of titles in digital storefronts makes it hard for any single game to stand out, but consumers are increasingly drawn to AA projects because of their high‑quality graphics. "I want every game to succeed, especially indie titles, but when you put a video out there, people gravitate toward the flashier stuff.
That naturally gives AA games more visibility." Yum stresses that PM Studios will not abandon indie developers. "We remain a big champion for indies, helping them finish and launch on platforms like Switch 2.
We were among the first to release full games on Switch 2 cards. The success of larger titles helps us fund and experiment with new indie projects." He also acknowledges the higher financial risk associated with AA games, so the studio applies safeguards: ensuring an attached IP, a sequel, a reputable developer, or strong wishlist data before committing resources. Yum has been especially impressed by the surge of AA games emerging from China, noting both the quality of the products and the speed of development teams. "Chinese developers are incredibly fast, hungry, and talented.
They can produce amazing games at a rapid pace and lower cost. If the rest of the world doesn’t keep up, they’ll dominate.
Tencent and NetEase already control a huge portion of the industry, so we’re already losing ground to them." Nonetheless, PM Studios’ pipeline remains heavily weighted toward Western developers, and the company continues to champion physical media. It recently launched the community platform Panax, designed to unite collectors of physical games and merchandise. "We’ve been building Panax 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 we’re adding and the benefits publishers will gain by joining the platform." Physical games may be on the decline, but there are still dedicated advocates who will keep beating the drum for them until the very end.