Sega chief: digital shift is crucial but physical media still valued

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Sega president Shuji Utsumi has addressed Sony's decision to end the production of game discs

Utsumi says, "We still value the culture of physical media," but "a digital shift is crucial"

He adds, "It is important to strengthen our digitalisation" in the current market

Sega president Shuji Utsumi has addressed the controversy surrounding Sony's decision to end the production of game discs in 2028 , acknowledging the importance of physical media but that the digital shift is "crucial."

In a recent interview with Japanese publication Famitsu (via Eurogamer ), Utsumi explained that the digital market needs to be cultivated and Sega believes in bolstering digitalisation.

"When it comes to titles we call 'full games' for consoles and PCs, we believe that a digital shift is crucial," Utsumi said. "Of course, consoles are important, but the proportion of people who play on PCs is steadily increasing. Even in areas where consoles are not widely available, there are many people who say, 'I can play it on PC.'"

He added, "In order to cultivate that market, we believe it is important to strengthen our digitalisation. We tend to think from a physical perspective, so I think we need to be more digitally conscious and become more global."

Utsumi then touched on Sega's hardware history, saying that while it isn't in the console market anymore and now primarily publishes games, the company hasn't forgotten its roots and the importance of physical media.

"We were originally a platform provider, and of course, we still value the culture of physical media," the president said. "Rather than completely abandoning that, we are currently challenging ourselves to shift so that we can think about and act on the important aspects of digital media in parallel."

Sony announced its plan to retire new physical discs earlier this month, explaining that the transition to all-digital games "will enable us to align more closely with how most of our community prefers to access and play games today."

PlayStation fans continue to push back against the decision , but analysts believe the company won't change its mind .

It's also said that the $7.2 billion second-hand video game market could be in danger as a result of Sony's decision , with Wedbush Securities managing director of strategic planning, Michael Pachter, reporting that "Brick and mortar game retail is doomed."

Elsewhere, Former Nippon Ichi Software CEO has objected to the plan , saying that while he understands it "From a purely business perspective," Sony doesn't "understand the feelings of those fans."

"If they’re going to go as far as eliminating physical packages, they may as well eliminate the hardware too," he said. "A television would be enough. Why would you need the console? If you’re going to get rid of physical games, you may as well go all the way."