A new wave of layoffs has impacted the video game industry, this time affecting Microsoft, whose gaming business has let go of over 1,900 employees across Xbox, its studios, and Activision Blizzard King. As time passes, updated information reveals changes in the landscape, and one of them could jeopardize the physical format on Xbox consoles.
Microsoft Shuts Down Departments Dedicated to Xbox Physical Game Distribution
According to information from the renowned Windows Central journalist, Jez Corden, the personnel cuts at Microsoft also reached the areas responsible for distributing physical Xbox games. The report states: "Microsoft has also shut down departments dedicated to getting Xbox games onto physical retail shelves… which, if youve seen the leaks of the all-digital Xbox console… well, you can get an idea of where Microsoft is going here."
Will Xbox Become Purely Digital? It Seems So
The news aligns with recent rumors indicating that Microsoft and its gaming business are about to bid farewell to the sale of physical games. This move is not surprising, as in the sales charts of the most important markets, multiplatform titles perform better on PlayStation and Nintendo Switch, leaving a very small percentage for Xbox. Additionally, Xbox users have more rapidly embraced digital formats for exclusive titles from the brand, something related to the Xbox Game Pass proposition and Microsofts gaming ecosystem.
A few days ago, it was reported that Walmart would be removing physical copies of Starfield. Simultaneously, other retailers like Best Buy are announcing the end of disc sales, which, while not affecting video games for now, highlights the declining interest in a business that has collapsed.
As if that werent enough, rumors about the redesign of the Xbox Series X suggest that the console will be digital-only. Thus, there is no reason to continue supporting the physical format from Microsofts perspective. In the end, its a business decision.
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