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"We Still Value the Culture of Physical Media" As PlayStation Prepares for an All-Digital Future, Sega President Comes Out in Support of Discs

Shuji Utsumi says Sega still values physical media, but the company must strengthen digitalisation as PC play grows and Sony moves to all-digital games.

  • Sega president Shuji Utsumi addressed Sony's plan to retire physical game discs by 2028, stating that while the company values physical media, a "digital shift is crucial" for reaching global audiences.
  • Utsumi noted that the proportion of gamers using PCs is "steadily increasing," and to cultivate this market, Sega believes it is important to strengthen digitalisation and become more global.
  • Drawing on Sega's legacy as a former platform provider, Utsumi emphasized the company's success as a publisher, aiming to act on digital and physical media in parallel.
  • Former Nippon Ichi Software CEO Sohei Niikawa objected to Sony's strategy, arguing that if the company eliminates physical packages, it may as well "get rid of the hardware" entirely.
  • The $7.2 billion second-hand game market faces risks from Sony's move; Wedbush Securities managing director Michael Pachter noted that the future for Brick and mortar retail is "doomed.
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Sega wants to significantly strengthen the digital distribution of its games without abandoning physical publications and the associated corporate culture.

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Nintenderos broke the news on Thursday, July 23, 2026.
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