Sega has said it does not intend to abandon physical games, while stressing that expanding its digital business is essential. The position is significant because it offers support for boxed releases amid growing concern over the industry’s move towards download-only games, particularly following Sony’s decision to end PlayStation disc production.

Sega president Shuji Utsumi said the company still values the culture around physical media, reflecting its history as a former console maker. However, he said digital distribution is crucial to cultivating the market, especially as the number of PC players continues to rise; Sega therefore plans to consider physical and digital releases in parallel rather than treating one as an immediate replacement for the other.