Xbox Reportedly Shuts Down Physical Game Release Divisions

thegamer.com:

Microsoft has reportedly shut down its division for physical game releases as part of yesterday's mass layoffs. This comes as an increasing number of new releases opt to release digitally, skipping a physical launch entirely.

While this doesn't mean that Xbox is leaving the physical games market - it was later noted that these roles could be outsourced - it suggests that such releases will be deprioritised. This would fit in with Xbox's strategy this generation, which has seen it heavily push its digital-only Xbox Series S model, as well as an increased focus on bolstering its Game Pass library.

News of Microsoft shutting down its department for physical releases comes from Windows Central journalist Jez Corden, who has shed some light on where yesterday's layoffs will be felt.

"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," says Corden.

Further down in the thread, he adds: "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."

Indeed, many publishers are pushing for an all-digital future. In Xbox's case, that's been through its Game Pass offerings, and its much cheaper Xbox Series S model. As Corden also mentions, leaked documents previously revealed that the next Xbox model will be based on the spec of the Series X, but be digital only like the Series S. This further indicates that Microsoft wants consumers to move away from buying physical games.

This remains a contentious topic in the gaming community. Ubisoft recently came under fire after one of its directors suggested that the move to digital "needs to happen", and that gamers should become "comfortable" with the idea of not owning their