Does Microsoft aim to eliminate physical disc games?

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• Discussions about Microsoft’s future release of physical disc versions of Xbox games have arisen amid reports of layoffs in its gaming department.
• While Microsoft’s CEO Phil Spencer acknowledges the support for physical media, he highlights the trend of most Xbox players opting for digital purchases.
• Despite departmental restructuring, Microsoft reassures that it still maintains teams for physical game distribution, reflecting a nuanced approach towards balancing digital and physical formats.

February 21st news, recently, discussions about whether Microsoft will continue to release physical disc versions of Xbox games have attracted attention. On one hand, Microsoft’s first-party AAA game “Hellblade 2: Senua’s Saga” for 2024 will be released on May 21st in pure digital form, priced at $50; on the other hand, there are unconfirmed reports that Microsoft dissolved the department responsible for delivering physical disc versions of Xbox games to retail stores during recent layoffs in the gaming department.

Microsoft supports physical media

In a recent interview with Game File, Microsoft Gaming Department CEO Phil Spencer was asked about the company’s plans to release physical disc versions of Xbox games. Spencer stated that while Microsoft “supports physical media,” he also pointed out that most Xbox players choose to purchase games digitally.

However, Microsoft does not seem to have abandoned its plans for physical game media temporarily. Spencer said: “But I can say that our strategy does not rely on people completely turning to digital… Eliminating physical games is not our strategic goal.”

Regarding reports of Microsoft shutting down the department responsible for physical disc game distribution, Spencer explained that this was part of the restructuring of the gaming department, adding: “We still have teams responsible for physical retail, including teams responsible for selling games in physical stores. So, the team adjustment does not mean we are giving up the ability to distribute physical game discs.”

Also read: News: Microsoft weighs launching Indiana Jones on the PS5

The number of manufacturers producing disc drives is decreasing

Microsoft has already launched an Xbox Series S gaming console without a disc drive. Looking ahead, Spencer pointed out that disc-based Xbox Series X and disc-based Sony PlayStation 5 consoles “have become the last batch of consumer electronics devices with disc drives.” He continued: “This is to some extent a reality because the number of manufacturers producing disc drives is decreasing, and costs are rising. When you consider the components we put into the console, the decrease in the number of suppliers and buyers will lead to an increase in the cost of disc drives.”

This may cause concern for some players who prefer to buy disc-based games because even if the digital versions of games are no longer available, discs can still allow them to enjoy these games freely.