Following the reveal of 1,900 job losses across various Xbox teams earlier today, more news continues to trickle in about exactly which teams have been affected, and some of them are apparently focused around physical games.
According to Windows Central's Jez Corden, Microsoft has "shut down departments" related to bringing physical Xbox games to market. He advises that Xbox isn't necessarily quitting retail, but things are clearly changing internally:
"Microsoft has also shut down departments dedicated to bringing Xbox games to physical retail ... which if you've seen the digital-only Xbox console leaks ... well, you can get an idea of where Microsoft is going here."
"Note: reducing retail teams doesn't confirm Microsoft is quitting physical retail for Xbox games yet, they can outsource, and might be consolidating here. So, don't run with "Xbox is quitting physical" based on this. But, it does seem to be the industry trajectory. Writing is on the wall."
As referenced here, a large-scale leak in 2023 revealed that Microsoft is (or was) seemingly preparing to launch an all-digital Xbox Series X model, leading to speculation about the company exiting the physical market eventually.
Corden also mentioned today that Microsoft is basically laying off the entire customer support teams for Activision Blizzard King games aside from a select few of them, with plans to outsource the rest to external companies abroad instead. He noted that a large number of Community Managers have been affected by the layoffs as well.
What are your initial thoughts on this? Let us know down in the comments section below.
[source twitter.com]
Comments 26
I'm like 95% digital but I do have a handful of physical games — and they're mostly BC ones. There are a few that are insanely expensive to buy digitally (or delisted from the store altogether) but you can still get more affordably physically used.
I hope there's some way to convert my physical copies to digital — even if it's a few bucks. Or maybe a detachable disc drive. Otherwise, this undercuts their whole argument about Xbox allowing your "libraries to carry with you."
@Kaloudz I'm thinking so too. But I'm still a little nervous until we get confirmation. Surely there will be SOME kind of solution.
As long as I can keep my old Xbox games like Mortal Kombat 9!
It is official then, physical is dead. I am fine with that. Haven't bought a physical game since Disney Infinite. And only did so then because of the physical accessories for the game.
Alright, well thanks for making my mind up for me next generation. Looks like I'll be going all in with PlayStation 6. I'll keep my Series X for my back compat and never give Xbox another dollar.
@NeoRatt So you didn't read down to the fifth sentence (second quote) of this article then?
@JokerBoy422 It figures, I finally join the Xbox community and as a physical games old person they are very publicly going and embracing all digital....
Time to go on another Game used shopping spree, to add to my backlog that'll I'll never touch!
Xbox has already been terrible in this area so not sure how it would get worse but ok. I’m digital with Xbox anyway but still.
It makes me sad that physical is on the decline but I have to admit the majority of my games are now digital. If you have Gamepass on Xbox there’s very little point in buying physical games. I do still buy the odd physical game, but not very often.
I think the big 3 console makers should maintain a physical presence, even if it becomes niche, it should always be an option.
I still want the choice to buy physical games but Phil Spencer has decided that won’t happen much longer.
Yes, digital is huge now but to just alienate millions of gamers is stupid and frankly shows that Spencer holds Xbox gamers in contempt.
Xbox is misreading the room today in a huge way.
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Well that's sad. Time to buy up physical I guess. As a physical Xbox gamer, yes physical only I am an anomaly and a minority of people that do. XD But for most people yeah it won't apply.
Then again reading the article as 'them not quitting physical' well that's fair I guess but whether they do still then just downsizing some staff or departments related to retail relations if that means production of disks then sure (in the future). If it means retail in terms of what retailers to communicate with and staff related to that (instead outsourcing or maybe more online retailers then Mall/shopping centre retailers?) or however far staff and departments and roles can go well will they get through to some Japanese retailers like they did plan to do probably not.
I have some regional store (still a major store chain of course) without any Xbox games but they appear on their website still. I have EB new or pre owned/Gamestop and local retro stores offer second hand well.
Will we see moments like limited editions well we already don't see Xbox support of Limited runs of games so....... likely not just digital codes then I guess.
If people want digital by all means. If it saves them lots of money makes sense (companies and customers). If no future Series X support of physical well it's a good blu ray player then and if that app even works in the future otherwise well enjoy whatever physical while you can and the disk drive be a reminder/look fancy on the console. XD If the blu ray app stops and my CD apps well I've got a nice PS3 to use.
I don't even like that media experience though but I still can. I like the PS4 media player UI more but it doesn't play CDs or music the way I'd like to like my Xbox One does. Time to go back to 360 then for good media UI then and DVDs/CDs and not awkward quality like PS2 has of artifacting on DVDs.
Otherwise who knows how we will see things. If they want to control what and when we play games on digital or Gamepass well no thanks I don't need an Xbox I barely use the console as it is. I don't even buy Xbox games digital anyways or use Gamepass 'ever' I did for Psychonauts once, seen some cloud use and that's it. I don't use the console myself compared to other people I know that do on occasion or are for Palworld/Enshrouded.
I'm not even old school either I just know what having physical is like I don't want convenience or business decisions, I want access. If we get games with fan groups reviving sure, if we get the ability to use things in the future by all means.
When will the OG Xbox on 360 service die? It's internet based, the 360 eshop is going. I need answers to that please Microsoft. I'd like it to stay as they are just updates and an internet connection I assume to white list them as it still takes the disk it's no download like Xbox One/Series consoles do it as a completely digital copy of the game at that point.
@Kaloudz I don't think it's as far away as people think. Alan Wake was digital only, Hellblade 2 is digital only.....it's started already and I'd imagine that most 2025 titles will already be digital only. Stores are already telling us that they are dropping physical media.
@CallMeDuraSouka this is so dumb. Luckily that is what I did though. I bought a crap ton of games and it's now to the point where even if I played games all day everyday for the rest of my life and that's all I did, id never get through them all.
Whelp, this is my last generation with an Xbox then. I got the Series X to play my 360 discs on an SSD and play a few third party games on the big screen. I hope 360 emulation picks up on PC to preserve these games since Microsoft likely will drop support for backwards compatability one day all together. It doesn't help that every exclusive Microsoft has released since the 360 era has sucked.
I'd hope Sony and Nintendo continue to support physical. They'll pretty much own the aisles at super markets now, moreso than already. Otherwise I'll be leaving console gaming behind. If I'm stuck with all-digital I'd rather it be on PC where I have other means of ensuring my ownership of games.
I’m also in the minority of Xbox owners who prefers physical. Maybe this leads to more deals with LimitedRun/iam8bit to produce their first party games for those who want?
I remember last year they said they were going to make it easier for indies to produce physical copies, and then we never heard anything. I guess we know why now 🤣
@MrMagic Sony is literally selling all digital consoles with an optional disc drive....if you don't think they are going all digital you're lying to yourself. All digital means lower costs and no lost sales to second hand market
One major advantage that physical has over digital that the majority of people don't realise or completely ignore is that you have zero chance of getting hacked. How many instances of people getting their credit card details stolen from online sites and they have to deal with the fallout. Doesn't matter if from the Xbox / Microsoft Store. Any online retailer is prone no matter what they say.
At least Playstation and Nintendo isn't going down that path in the immediate future. I always opt for physical for Playstation. As for Xbox, I rely on Gamepass but do not download games that run 100s of Gb as it takes far too long to download. That's when Cloud comes in.
Well you can always abandon modern gaming and just embrace the tens of thousands of past physical releases on past systems.
Digital only, battle passes and DLC everywhere, half finished games set out the door to fix later, the business is already sounding more off-putting with every year that passes.
Not to say there aren't still great games being put out, just the large majority of releases embraces the stuff people hate or put up with.
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@MrMagic I'm sure they would love to go all digital tomorrow. They will let Xbox go first to take the heat and they will go not long after. Next Gen will be all digital but they likely will start in 2026/27 once Xbox got beat up about it and everything settles down.
Is PC is 100% digital? PC ain't my jam so not sure if it already is and of so for how long?
I understand the decision but it still suck, props to Nintendo for being at the forefront for preserving the culture of releasing games in physical format (assuming the rumour of Switch 2 games will have larger capacity cartridge).
People should just be allowed to buy Xbox proprietary disc in the future that allow them to make physical games of their own.
Hope Hi-Fi gets a physical when it comes to switch and Playstation
mostly annoyed that i feel like i have been lied to.
comments that your game discs aren't going away and the series x launching with a disc drive , then after you have bought one they change the playing field/rules of the game.
I’m not ok with this. It’s bs. All about control.
Don Mattrick never left. Say so long to your SeriesX, Xone,X360,Xbox physical collection working with future (lol) Xbox consoles.
Shame really
Dark Days...
Gaming Sites need to cover the Starfield situation.
MS is recalling copies of Starfield from Walmart to landfill them.
MS seems to really want to remove Physical as an option.
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