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.
What do you make of this? Do you still buy physical games on Xbox or do you mostly play digital versions? Let us know.
[source gamefile.news]
Comments 40
I wish they still sold them here.
Microsoft hasn't sold physical copies of xbox games here in Japan since the early Xbox One games. Fans here in Japan have to buy import games or buy digital. Not having any copies in the stores or on amazon is one of the big reasons xbox isn't more popular here. TuT
IF Microsoft ditches physical games with the upcoming mid-gen refresh or the next generation in 2026-7, I sincerely hope they consider selling limited-edition consoles capable of playing physical media and then licensing a third-party to sell physical media, such as Limited Run Games, for a premium.
If Xbox hits all digital, it's that very moment, I buy a Playstation the next day.
This coming from a person that bought the original Xbox on release day and been with Xbox ever since and was a beta tester for Xbox live. And someone who also absolutely, completely, hates the Playstation controller.
Doesn't really matter if they plan on it or not, it depends on how many Third-Parties deem it worth doing when sales are higher digitally as the years come. If most devs eventually deem physical Xbox games a waste of resources, Microsoft isn't gonna keep making a disc drive just for their games and the handful of stragglers.
@shirguis Sounds like two problems feeding each other - Xbox isn't as popular, so it gets less physical games, which makes it even less popular, which means it gets even less physical games - etc.
Hope they keep it around. I do plan on upgrading to an X of some sort even if it's the mid gen refresh and has a disc drive. I want to start collecting xbox games.
I still buy physical games whenever possible, mainly so my kids can play them on their own consoles. I don't believe their is any digital alternative for this use case instead of buying them multiple times for each accouny unless playing them on the same machine. Also I just like the boxes on my shelves and fear the power these companies have with the ability to just ban your account.
I would understand if they would step away from new physical releases, but since Microsoft is so big on the backwards compatibility thing it would be a big problem if they'd stop offering a physical drive on their future consoles. Maybe they should consider an optional external drive.
I can't believe they can't come out with an alternative to drives. Clearly all these companies - Microsoft, Sony, Nintendo, but pretty much everyone in the industry - just want to get rid of physical products and transferable ownership and push people to digital only, which is obviously what the masses carelessly are doing.
Solutions to a world where physical games and disc-less consoles are a thing exist but they will never happen because people are good at digging their own graves.
Just stop telling lies, Phil.
What about the upcoming adorably all-digital console? Hopefully they think about releasing an external disc drive for that and the Series S.
Closes the physical division and barely sells physical games anyway. Can this man stop lying for 5 minutes?
If they stop I’ll sell my Xbox and stick to PlayStation
@GuyinPA75 I think when that happens, PlayStation will have been all digital for a while.
It’s good to hear them say it. Physical was not mentioned AT ALL during their 20 min podcast or the several lengthy follow up interviews. This shows they have been listening.
That said they are being awful again at giving us facts and figures instead using vague terms like “majority”. Is that 51% or 99%?
We KNOW for example Sony sold 33% of all games physical last financial year because they provide figures. (though that doesn’t account for the fact many games, especially indies, only release digitally inflating the digital side of that figure. Nor does it include the second hand/lending market).
It would be good for Microsoft to be more transparent here instead of using ‘trust me bro’-like vagueness.
But even that doesn’t tell the full story. Through the Insomniac leaks we also know Sony first party games are nearer 65% physical across 30+ of their recent games, over 291 unit million sales, up to FY2021. It seems users prefer physical media for AAA, the OPPOSITE of what they tell us. So no I don’t trust any of these companies when it comes to this, they have a vested interest in telling us the industry is going digital. They are pushing the narrative that they are doing us a favour by still making physical an option.
As for “kind of become the last consumer electronic device” that have a drive in them this is just false. In fact almost everything from Vinyl, CDs, Blurays have been increasing in sales in recent years with the first two both having 20 year high increases last year. Likely as a result of the rise of Digital media and the loss of ownership.
very simple, digital games upon release of a game cost 80 euros, most games, okay I take the car, drive 10 minutes, buy the same game, physical version, spend 60 euros, same game at a media market, don't feel like going away, order online also possible
lol, straight up lying right there
@GuyinPA75
I agree on that statement of hating the PlayStation controller. 👍 I could never get to grip of the PS controller at a friend house years back. So it was a big part why, I went for xbox original and Halo convince me also.
But I have bought psychical disc xbox games in the past. But I am buying more digital xbox games now. Still the last 2 disc games i bought are, Gotham knights disc for € 5 and cyberpunk 2077 disc for € 25. So their is definitely good value sale on xbox psychical disc game.
The psychical disc are here for at least another generation xbox and PlayStation console. Which I won't be ever buying a PlayStation console. I rather buy Nintendo if Microsoft leave hardware console in the future.
It's good to see rational minded people realise that these suits aren't your friends and will lie to you. Spencer, Ryan and Bowser are all the same.
Why is MS recalling all copies of Starfield from Walmart?
Why are they landfill-ing physical copies of popular games?
This is a terrible, adorably all-digital look for MS.
I think what this comment is saying is that Switch/PS5 will get physical copies of Xbox 1st party games meanwhile Xbox consoles go down the "adorably all digital" route that was leaked back in September. So like for example whenever Hi-Fi Rush is announced for Switch/PS5, it gets a physical version but there's none for Series X.
It's the only way I can think of in which the comment made here isn't technically a lie meanwhile also explains recent events.
Isn’t it the case on PlayStation too? Digital is outselling physical? It’s just that their user base is so much bigger that physical are still selling at an acceptable level.
I like Gamepass and its value, but there’s no question it’s contributed to physical on Xbox fast becoming history. Uncle Phil can say all he wants about physical games on Xbox but if it doesn’t make financial sense for a disc drive to be in the consoles anymore, they’ll drop it as quickly as possible. The market will also dictate this to some extent but you can’t trust what uncle Phil is saying when it comes to physical media on Xbox.
@Fenbops
As soon as they drop the disc drive, I drop Xbox entirely and just stay using my Series X.
I've built up a good amount of the backwards compatibility lineup and I'm not losing that because Microsoft may not want to give me an option anymore.
Say what you will about the PS5 slim disc drive, at least it's an option.
@G4n0nD0rf If everyone is playing on the same console just buy games on one profile make what ever console your kids use as your home console and any profile can play the games you bought with that profile without needing that profile signed in hope I explained this well for you ha
It's not just games or consoles we don't need disc or anything like that anymore the world is moving on like we did from VHS and cassettes
@eire-shabba
Speak for yourself.
I guess if they drop the disc less series x this year 2024 and REMOVE the disc series x, that will give their true intentions.
My thoughts is they will release the disc series x with 2tb of ssd and still keep the existing disc series x going for the time being.
@GamerDad66 that walmart rumor was a while ago now. Game is still on the shelves at Walmart. Looking like another incorrect rumor.
@eire-shabba I know but I still have my VHS Xbox One, One X and Series X. There is just no way to let everyone play all my games on every console digitally. Long live physical media!
@ShadowofTwilight No buddy I speak for everyone remember you must not of seen check your email it's all been agreed
@G4n0nD0rf Ok suits you so and that's good it's easier for me to go the digital route before I had physical games I would just trade them in constantly keep the odd few I like but that was it but now I have a huge digital collection and even when I get my series X I probably won't use the disc drive at all
This plastic crap can't die fast enough. It's just not reasonable. Not in a economical sense, not in a ecological sense, not in a consumer's right sense. People don't need dust collectors, and they also don't own the game because they bought the physical version. If a publisher or developer want's to void your right of use they can do so with digital and physical copies. Doesn't even need a technical measure for this. So, what's really needed is better laws that protect the consumer from arbitrariness.
Let’s face it, we’re only a console generation or two away from physical games being obsolete.
@GeminiReign If they wanted they could simply say you are not allowed to play this game any longer. You do not own the game. You have the license to use/play the game. They can legally void said license. Every time you start the game you would pirate the game and you know how this works. I doubt anyone would do it, because they don’t want to - as said.
Same with digital purchases. No one wants to disable them. I own hundreds, there is not one that was shut down without physical copies not being affected as well. If the game, login, or licensing server is down, your physical copy will do jack for you.
@GeminiReign Laughing about this is a bit childish, tbh. Have you ever pirated a game, film, or music and were called by the license holder to stop doing what you are doing? Probably not. It's a rare occurrence, but as you know there were others who had legal issues because of it. No matter how improbable, legally speaking, it's still within their rights to void your license whenever they please. But don't worry, it most likely won't happen, because, as said, no one is interested in this. What I want to say with this is: This goes for physical as well as digital copies. Meaning, the anxiety about digital is really unsubstantiated.
Name a few games that are not longer digitally playable, but only as a physical copy. On the other side, disc drives break. Physical media changes, becomes incompatible. CDs, DVDs, BDs break, scratch, have limited longevity. They literally die while being used and lying around. In the long run that's a lot of avoidable waste.
There is no real advantage in physical media. There is only a subjective fuzzy good feeling, and from my point of view that's simply not enough to warrant keeping this crap alive. These shiny round plastic frisbees will thankfully some day go the way of floppy disks and cassettes. I just wish it was sooner rather than later.
I can't actually remember the last time I bought a physical game. They are basically saying "we aren't ditching physical media, but it's being ditched by manufacturers", which has the same outcome. Sony is also looking at digital only consoles so it's inevitable at this point.
Although I am all digital I like gamers to have choice in how they purchase their games. I expect that physical media is dying a slow death, but that doesn't mean there isn't significant demand for it.
@GuyinPA75 playstation will be all digital soon too
@NintendoByNature yeah and Xbox one games are cheap right now. I got gears of war ultimate edition for £3 physical in mint condition from cex. It's also a good blu ray drive
@DonkeyKongBigBoy Then I will go to Nintendo. Or I will get new hobby. Have tons of reading, TV shows, movies to catch up on. The books, TV shows, and movies are in my physical collection not going anywhere.
@GuyinPA75 good for you son.
@DonkeyKongBigBoy Thank you daddy-o.
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