Despite being an online-oriented game, Toontown Online was briefly distributed as a CD-ROM title in 2005, with Sony subsidiary Platform Publishing handling the physical release. The CD-ROM version allowed players to run the game without needing to install it onto their computers and came with a free two-month subscription and an in-game kart that players could drive on Goofy Speedway. Home console ports of Toontown Online were also announced concurrently with the CD-ROM edition, but these never materialized.

According to a 2004 Game Developer article by developer Mike Goslin, the decision to give the game a physical release was due to anxieties from consumers about not being able to physically hold a game that they were spending money on, as online distribution had not yet been fully established as a mainstream distribution model for video games.