There have been reports in recent months about Xbox potentially scaling back its physical software departments, so what can be expected going forward?
Speaking to Game File recently, Microsoft Gaming CEO Phil Spencer reiterated how Xbox is still "supportive of physical media" and "getting rid of physical" games is not part of the strategic plan.
"I will say our strategy does not hinge on people moving all-digital...And getting rid of physical, that's not a strategic thing for us.”
However, he did note how right now "a majority" of Xbox users are buying games digitally, and Microsoft is "really just following what customers are doing".
Although Xbox is supportive of physical products, Spencer does have some "economic concerns" according to the source - mentioning how game consoles have "kind of become the last consumer electronic device" that have a drive in them, which makes it a "real issue" going forward:
"And this is a real issue, just in terms of the number of manufacturers that are actually building drives and the cost associated with those. And when you think about cogs that we're going to go put in a console—and as you have fewer suppliers and fewer buyers—the cost of the drive does have an impact."
Last month, Xbox's physical games department was reportedly affected by Microsoft's layoffs. It follows a leak of an all-digital Xbox Series X model. Spencer was not open to talking about this leak in the latest interview, but previously mentioned how plans had changed.