PM Studios pivots to code-in-box collectibles before Sony's 2028 disc cutoff
Summary
PM Studios, physical publisher of Black Myth: Wukong and 100-plus titles a year, is shifting to code-in-box packaging and premium collectible bundles ahead of Sony ending PlayStation disc production in January 2028.
CEO Michael Yum frames this as an operational pivot, betting collectability and fan service sustain physical revenue once discs disappear.
Retail data on Bluey's Quest For The Gold Pen and Animal Well points to kids and collectors as the durable physical segments.
"We want to emphasise the collectability of the IPs and fan service, so we'll probably make very nice premium stuff and bundle it together"
01
Code-in-box bundles replace the disc as the product
Sony's January 2028 cutoff removes the format PM Studios has built its business on for 20 years.
Yum shifts physical packaging from disc-in-box to code-in-box, making the box itself the product.
The strategy trades disc manufacturing cost for packaging and merchandise margin.
"It's unfortunate, but eventually it will have to probably be a code in a box."
02
Retail data shows where physical demand survives
Bluey's Quest For The Gold Pen sold roughly 80% physical, per Yum, marking families as a durable segment.
Animal Well's mass retail edition sold strongly through Lost In Cult after a Limited Run edition already shipped.
Collectors buy multiple physical variants of the same title.
Black Myth: Wukong's physical run "covered everything else" financially for PM Studios that year.
03
PM Studios shifts capital toward bigger IP bets
PM Studios is taking on full funding roles, investing directly in Telltale's stalled The Wolf Among Us 2.
Yum backs AA titles only with attached IP, sequel status, credible developers, or proven wishlist demand.
Physical Dispatch and full publishing on My Time At Evershine extend the same bigger-bet approach.
"I told them that I can help invest and fund this game, and I could bring in my marketing team and production team operations to help finish the game in a timely manner."
04
Chinese AA output undercuts the pivot's cost assumptions
Yum says Chinese teams produce AA-quality games faster and cheaper than Western counterparts.
Tencent and NetEase already control large parts of the industry, per Yum.
PM Studios' premium AA bundling competes against producers that undercut on speed and price.
"They're making games way faster than everyone else, way cheaper than everyone else."
05
Panax platform extends collector infrastructure beyond the disc
PM Studios launched Panax, a community platform for physical game and merchandise collectors.
The platform's trophy-tracking feature recently went viral, giving Yum a live collector-demand data point.
Yum says upcoming features will give partner publishers direct benefits on the platform.
What this means
For Publishers & Developers: Big-name IP still moves physical at retail regardless of digital share - a licensing base for collectible bundles.
For Investors & VC: PM Studios is moving from distributor to funder, taking direct equity-style risk on AA titles like Wolf Among Us 2.
For Service Vendors: Panax positions PM Studios as distribution infrastructure for a disc-less collectible market.
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