PM Studios has been a veteran in the world of physical game publishing for decades. Roughly twenty years ago, the Las Vegas‑based company introduced the Korean rhythm‑action franchise DJMax to North America, and ever since it has built a solid business model around pressing a diverse array of titles onto discs, cartridges, and other tangible media. "We typically back up a hundred or more games on the physical side each year," explains CEO Michael Yum to GamesIndustry.biz.
"We also handle a lot of the physical publishing for 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 reach new regions. "I had many 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 Black Myth was initially "one of our biggest risks" when PM Studios agreed to handle its physical distribution, yet the title exploded far beyond his expectations.
"I never imagined it would become that massive. When it blew up, it was an eye‑opening experience – I’ve never seen anything like it. It was so huge that it essentially "covered everything else" in our catalogue." The triumph, however, is now shadowed by Sony’s decision to cease PlayStation disc production in January 2028.
"It feels sad and devastating," says Yum. "My first games were on PlayStation, and I’m a lifelong PlayStation fan, so I still buy a lot of physical copies. But the reality is that a new generation is gravitating toward digital. My own kids, who grew up with streaming, get confused when I hand them a disc." Even with the looming end of PlayStation discs, PM Studios intends to keep supporting physical releases in whatever form possible.
"We’re exploring new ways to get games out there. Eventually we may end up with a code‑in‑a‑box model, but we want to highlight the collectibility of IPs and fan service. We’ll likely produce premium bundles, special editions, and other unique formats to keep the physical experience alive," he explains. Although digital sales dominate the global market, Yum points out that a robust physical segment still exists, especially for titles aimed at younger audiences.
PM Studios published the children’s game Bluey’s Quest For The Gold Pen, and about 80 % of its revenue came from physical copies. Big‑name IPs continue to perform strongly at retail, and there is a healthy appetite for physical versions of indie games that have already proven successful digitally. "Animal Well had a limited run through Limited Run, and then we released a mass‑retail version of Lost in Cult that sold extremely well. Fans keep coming back for the physical edition; collectors love it," Yum notes.
Physical media also offers an economic advantage: a single disc can be shared among multiple players, unlike digital licences tied to one account. "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, the backlash against the end of discs stems from a sense of loss. "People are upset because you’re taking away a choice," Yum observes. "Even if most sales are digital, many gamers still value the tactile experience and the ability to own something tangible." With the PlayStation disc window closing, PM Studios is adapting its strategy. "That’s why you’ll see us handling more digital‑only titles," he says.
The company remains committed to physical releases— it is already preparing a disc version of AdHoc Studio’s hit Dispatch— while also taking on full publishing responsibilities for projects 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 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 bigger IPs." PM Studios isn’t alone in navigating the shift away from physical media. Singapore‑based GCL Global Holdings, originally built around physical distribution, is now betting on AA publishing through its 4Divinity label, which recently made a splash at Gamescom. The success of Black Myth has convinced Yum that AA games hold considerable promise.
He notes that the sheer volume of titles in digital storefronts makes discovery difficult, but AA games often attract more attention because of their higher production values. "People are a little more excited about AA titles; the graphics are impressive, and they stand out among the sea of indie releases." Nevertheless, Yum insists that indie games remain a priority. "We’re still big champions of indie developers.
We’re helping them finish their games and launch on Switch 2, and we were among the first to release full games on the new Switch 2 cartridge. The revenue from larger hits helps us fund new indie experiments." He also acknowledges the financial risk inherent in AA projects, which require larger upfront budgets. "We mitigate risk by choosing titles with an existing IP, a sequel, a credible developer, or strong wishlists. Anything that reduces uncertainty is a factor in our decision‑making." Yum is particularly impressed by the rapid development cycles of Chinese studios.
"I’ve been working a lot with Chinese developers, and it’s astonishing—they’re incredibly fast, hungry, and talented. They can produce amazing games at a pace and cost that outpaces the rest of the world. If other regions don’t keep up, China will dominate.
Tencent and NetEase already control a massive share of the industry, and we’re already feeling that pressure." Despite this focus on China, the bulk of PM Studios’ upcoming slate still comes from Western creators. The company also remains a staunch advocate for physical collectors, having launched the community platform Panax to unite fans of physical games and merchandise.
"We’ve been developing Panax for years. It recently went viral because of a trophy‑tracking feature we posted. I’m excited for everyone to see the new tools and benefits publishers will get by joining the platform," Yum says.
Physical games may be on the decline, but for PM Studios and like‑minded publishers, the fight to keep the medium alive will continue until the very end, driven by nostalgia, collectibility, and the belief that tangible media still has a place in the gaming ecosystem.