When Sony announced that it would stop releasing new physical PlayStation games in January 2028, you may have started worrying that other publishers could eventually follow the same path. However, it appears SEGA has no intention of abandoning physical game releases anytime soon. The company has acknowledged the growing importance of digital distribution, but according to SEGA President and COO Shuji Utsumi, physical games still have an important place in its strategy.

Speaking in a recent interview with Famitsu, Utsumi was asked about SEGA’s approach to physical game software at a time when much of the industry is moving toward digital releases (notably including GTA 6 launching without a disc). He explained that SEGA has a long history with physical media and continues to value it. Rather than replacing boxed games entirely, the company wants to support both physical and digital releases going forward.

Physical media will remain in SEGA’s plans

According to Utsumi, SEGA isn’t planning to completely move away from physical products. Instead, it is working on a strategy that allows it to continue supporting traditional game packaging while also expanding its digital business.

“We were originally a platform provider, and of course, we still value our physical culture. Rather than completely abandoning that, we are currently challenging ourselves to shift towards being able to think about and act on the important aspects of digital in parallel.”

Shuji Utsumi, President and COO of SEGA, via Famitsu [translated]

Although SEGA isn’t planning to abandon physical media, Utsumi emphasized that digital distribution has become increasingly important to the company’s future. He explained that PC gaming continues to grow around the world, including in regions where consoles are less common. Many players who don’t own a dedicated gaming console are able to access new releases through PC instead, making digital platforms an important opportunity for publishers.

Utsumi noted that the company needs to think more about digital distribution to reach a wider audience. “We tend to think from a physical perspective, so I think we need to become more digitally conscious and more global,” he says.

That doesn’t mean physical games are being left behind. Instead, SEGA appears to be treating digital growth as an expansion of its business rather than a replacement for boxed releases.

About the Author

Abdul Haddi

Abdul is a tech writer and Editor for PC Guide, specializing in all things tech, gaming, and hardware.