Sega president Shuji Utsumi told Famitsu that the company intends to accelerate digital distribution for major console and PC releases while continuing to support physical formats that remain important to many players.
Utsumi’s comments come amid industry shifts highlighted by Sony’s announcement it will stop producing physical game discs from January 2028, a decision that has prompted publishers and platform holders to clarify their own strategies.
In the Famitsu interview, Utsumi said Sega views a transition to digital as essential for what the company calls “full games” on consoles and PCs, noting that the PC player base is growing and that many consumers indicate a willingness to play on PC.
Paraphrasing his remarks: Sega believes strengthening digital distribution is necessary to cultivate the expanding PC market and to meet changing player habits.
At the same time, Utsumi emphasized Sega’s historical role as a platform provider and its continued respect for physical releases.
He conveyed that Sega values the culture surrounding boxed and cartridge-based games and does not intend to abandon physical media outright.
Instead, the company plans to pursue digital and physical strategies in parallel so it can preserve important aspects of physical distribution while advancing digital initiatives.
Those dual priorities are visible in Sega’s recent activity on Nintendo’s platforms.
Sega has issued Game-Key Cards for many of its titles on the Nintendo Switch 2, a distribution method that lets retailers sell a physical purchase card that redeems a digital download on Nintendo’s eShop infrastructure.
That approach reflects a hybrid strategy: maintaining a physical retail presence while relying on digital delivery for game installs and updates.
Sega’s stance follows its long history in hardware and arcade development — the company was a console manufacturer in previous generations and has deep roots in arcade culture — which helps explain its continued commitment to physical formats.
Utsumi’s comments frame Sega’s position as pragmatic: accelerate digitalization where it benefits market growth and convenience, but retain physical offerings that matter to collectors and certain retail channels.
As platform holders and publishers adapt to Sony’s 2028 change, Sega’s publicly stated approach clarifies that the company will push digital distribution for major releases but will continue to produce and support physical media where there is demand.
Utsumi’s comments come amid industry shifts highlighted by Sony’s announcement it will stop producing physical game discs from January 2028, a decision that has prompted publishers and platform holders to clarify their own strategies.
In the Famitsu interview, Utsumi said Sega views a transition to digital as essential for what the company calls “full games” on consoles and PCs, noting that the PC player base is growing and that many consumers indicate a willingness to play on PC.
Paraphrasing his remarks: Sega believes strengthening digital distribution is necessary to cultivate the expanding PC market and to meet changing player habits.
At the same time, Utsumi emphasized Sega’s historical role as a platform provider and its continued respect for physical releases.
He conveyed that Sega values the culture surrounding boxed and cartridge-based games and does not intend to abandon physical media outright.
Instead, the company plans to pursue digital and physical strategies in parallel so it can preserve important aspects of physical distribution while advancing digital initiatives.
Those dual priorities are visible in Sega’s recent activity on Nintendo’s platforms.
Sega has issued Game-Key Cards for many of its titles on the Nintendo Switch 2, a distribution method that lets retailers sell a physical purchase card that redeems a digital download on Nintendo’s eShop infrastructure.
That approach reflects a hybrid strategy: maintaining a physical retail presence while relying on digital delivery for game installs and updates.
Sega’s stance follows its long history in hardware and arcade development — the company was a console manufacturer in previous generations and has deep roots in arcade culture — which helps explain its continued commitment to physical formats.
Utsumi’s comments frame Sega’s position as pragmatic: accelerate digitalization where it benefits market growth and convenience, but retain physical offerings that matter to collectors and certain retail channels.
As platform holders and publishers adapt to Sony’s 2028 change, Sega’s publicly stated approach clarifies that the company will push digital distribution for major releases but will continue to produce and support physical media where there is demand.
