Goodbye physical games for Xbox? Microsoft would shut down its physical video game distribution division

Microsoft announced yesterday mass layoff of more than 1900 people its video game division, the decision was a result of the inclusion of newly acquired major companies (Activision Blizzard and Bethesda) in the Xbox studio staff. This major decision had logistical consequences, such as the cancellation of one of Blizzard’s major projects, but it didn’t stop there.

According to Jez Cordenfamous journalist and insider Xbox, the company’s video game division Microsoft would shut down its physical game distribution division. This is confirmed not by the company itself, but by sources “close” to it, who also talk about the closure of the Activision Blizzard customer service department, which will be outsourced.

New merged Xbox series

Although the proliferation of physical video games is also can be outsourcedthis insider points to a more radical possibility: Xbox might consider abandoning the physical format and switching entirely to digital distribution. To do this, he relies not only on this unofficial information, but also on the fact that new Xbox series digital only a few months later.

This new leaked Xbox Series X model is codenamed “Brooklyn” will replace the current console in stores; This will lead to a lack Hardware Microsoft video games already have disc readers. True, the head of Xbox, Phil Spencer, issued a statement regarding these leaks, assuring that the documents are real, but many plans have changed, although he did not specify which ones.

There are some AAA games on Xbox these days with over 80% digital shares, so it’s not that surprising.

It is indicative of what the next generation will be like. Daniel Ahmad (@ZhugeEX) January 25, 2024

Another expert in the video game industry, analyst Daniel Ahmadresponded to Corden, focusing on the current situation with physical Xbox video games: he states that there are “certain Xbox triple A’s” whose Digital sales account for more than 80% of the total., so it wouldn’t surprise you if Xbox’s future strategy involves ditching the physical format. However, for now all this is just speculation and unofficial informationand as far as we know, Microsoft will continue to distribute its games both physically and digitally as before.