PM Studios has been a veteran in the world of physical game publishing for roughly two decades. Back in its formative years, the Las Vegas‑based company introduced the Korean rhythm‑action franchise DJMax to North America, and from that point onward it built a robust business model centered on pressing a diverse array of titles onto CDs, DVDs and cartridges. "We typically back up a hundred or more games on disc each year," explains CEO Michael Yum to GamesIndustry.biz.
"We also handle a lot of the physical logistics for other publishers. When you sign one of those partners, you can be looking at ten titles a year just from that single relationship." Over time, PM Studios has acted as a bridge for developers seeking to reach markets beyond their home territories. "I had many friends in Korea who struggled to get their games out," Yum recalls. "So I started importing titles from Korea and China for release in the U.S.
and Europe." One of those imported games turned out to be a game‑changer: Black Myth: Wukong. Yum admits that Black Myth was initially "one of our biggest risks" when the studio agreed to handle its physical distribution, but the title quickly eclipsed every expectation.
"I had no idea it would blow up the way it did. When it took off, it was a completely new experience for me – I've never seen anything like that. It was so massive that it essentially "covered everything else" in our catalogue," he says. Ironically, just as PM Studios was riding a wave of unprecedented physical‑sales success, Sony announced that it will cease PlayStation disc production in January 2028.
The news hit the company hard. "It's sad and devastating," Yum says, his voice tinged with nostalgia.
"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 many younger gamers are moving straight to digital. My own kids, who are true digital natives, get confused when I hand them a disc and ask them to insert it." Despite the looming discontinuation, PM Studios is not ready to abandon the physical format.
"We're exploring new ways to bring games to market. It may end up being a code in a box, but we want to highlight the collectibility of IPs and provide fan service. That means premium packaging, bundles, and creative approaches to keep physical editions alive," Yum explains.
Even though digital sales dominate globally, Yum points out that there remains a vigorous physical market for titles aimed at younger audiences. PM Studios released the children's game Bluey's Quest for the Gold Pen, and roughly 80 % of its revenue came from physical copies. He adds that established franchises still perform strongly on store shelves, and that indie games which have proven themselves digitally can also thrive in retail. "I did a mass‑retail run for Lost in Cult and it sold extremely well," he notes, referencing the earlier limited‑run physical of Animal Well that had already found a niche among collectors.
"Fans keep coming back for the physical version; collectors love it." There is also a practical economic benefit to a disc that can be shared. "I have twins, so I don't want to purchase two digital licences.
I buy one disc, they share it, and they can lend it to friends," Yum says, illustrating how a single physical copy can serve multiple households. Beyond the economics, Yum believes the backlash over the end of discs stems from a sense of loss.
"People are upset because you’re taking away a choice," he observes. "Even if most sales are digital, the option of owning a tangible product matters to many gamers." With the PlayStation disc deadline fast approaching, PM Studios is adapting its strategy. "That's why you see us handling more digital titles now," Yum says.
The company remains committed to physical releases – it is backing the upcoming disc version of AdHoc Studio's hit Dispatch – but it is also expanding into full‑service publishing for games like 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 what we could do to help," Yum recounts. "The biggest hurdle was funding, so I pledged investment, marketing support, and production resources to get the game finished on schedule.
Our goal now is to take bigger risks on larger IPs." PM Studios is not alone in navigating the shift away from physical media. Singapore‑based GCL Global Holdings, which built its business on disc distribution, is pivoting toward AA publishing through its 4Divinity arm, a move that garnered attention at Gamescom.
Yum says the success of Black Myth: Wukong has reinforced his belief in the potential of AA games. The sheer volume of titles in digital storefronts makes discovery difficult, but high‑quality AA projects attract attention because of their polished graphics and production values. "I want every game to succeed, especially indie titles, but when a video drops, people gravitate toward the flashier, higher‑budget games. That naturally draws more eyes." Nevertheless, PM Studios will not abandon indie developers.
"We remain a big champion for indies," Yum affirms. "We continue to support many of them, help them finish their games, and launch them on platforms like Switch 2. We were among the first to release full games on Switch 2 cards.
The revenue from bigger hits helps us fund experimental indie projects." He also acknowledges the higher risk profile of AA games, which require larger upfront investments. To mitigate that risk, PM Studios applies a set of criteria: an existing IP, a sequel, a reputable developer, or strong wishlist data. Anything that can reduce uncertainty is taken into account before committing resources. Yum is particularly impressed by the surge of AA titles emerging from China.
He praises Chinese studios for their speed, hunger, and talent. "I've been working a lot with Chinese developers, and it's incredible. They move quickly, produce high‑quality work at lower cost, and set new standards.
If the rest of the world doesn't keep up, they will dominate the market. Tencent and NetEase already own a huge slice of the industry, and we are already feeling that pressure," he warns. Despite the focus on Chinese partners, most of PM Studios' upcoming slate still comes from Western developers.
The company also launched a community platform called Panax, designed to bring together collectors of physical games and merchandise. "We've been building Panax for years," Yum says.
"It recently went viral thanks to a trophy‑tracking feature we posted. I’m excited for everyone to see the new tools and benefits publishers will gain by being on the platform." Physical games may be on the decline, but for PM Studios and its allies, the fight isn’t over. They intend to keep championing discs, premium bundles, and collector‑focused experiences until the very end, ensuring that the tactile joy of holding a game in your hands remains a viable option for gamers who still value it.