Disgaea’s CEO Reveals Talks with Sony on the Future of Physical Discs, Emphasizing Customer Feedback

Kenzo Saruhashi, the CEO of Nippon Ichi Software and now also president of its subsidiary, NIS America, is among the many industry leaders concerned about Sony’s recent announcement to halt the production of physical game discs starting in 2028. However, he remains hopeful that a compromise can be reached that benefits his company, which is known for its physical limited editions of games.

At PAX West, I had the opportunity to sit down with Saruhashi to discuss his first year leading Nippon Ichi and his new role at NIS America. During our conversation, I brought up Sony’s announcement and its potential impact on his business. Both Nippon Ichi Software and NIS America regularly release not only standard physical copies of their games but also elaborate limited-edition bundles that include discs and various collectibles. Although the company briefly experimented with game key cards for the Switch 2, this approach didn’t resonate well with their audience.

Saruhashi shared that he and his team were working with the same information available to the public and were unaware of other companies’ strategies. “For me, a significant part of our business model, especially with NISA, revolves around producing physical limited editions. This is crucial for us, and we plan to keep delivering those high-quality physical editions that our customers expect.”

When I inquired whether this would lead to a shift towards a “code in the box” model, he acknowledged that it was one possibility, but not the only one on the table.

“In our talks with Sony, it seems they are listening to customer feedback. While that could be one direction we take, the conversation might evolve, so we’ll have to wait and see what unfolds.”

This response made me wonder if Sony was feeling enough pressure from developers to reconsider its position, even slightly. This speculation is somewhat supported by recent reports that PlayStation is sending out surveys to game developers asking about their experiences with selling physical games.

While these hints may not lead to significant changes, Saruhashi’s optimism could be a sign of potential flexibility from Sony. It seems more plausible that Sony might carve out a way for certain companies to continue producing limited runs of physical discs for special editions, like those from Nippon Ichi. Until any official announcements are made, though, it appears the end of physical discs is still set for the end of next year.