Microsoft is reportedly shutting down the departments dedicated to bringing "Xbox games to physical retail."
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| Xbox Physical Game Release Divisions Has Reportedly Been Shut Down |
Microsoft recently made headlines by announcing a significant cut of 1,900 jobs spanning across Xbox Game Studios, Activision Blizzard, and ZeniMax. Among the repercussions of this decision, reports indicate that the divisions in charge of releasing Xbox games in physical form have been closed.
Xbox Physical Game Release Divisions Has Reportedly Been Shut Down
One of Microsoft's announced actions during yesterday's major layoffs was to close down its division responsible for physical game releases. This is happening at a time when more and more new titles choose to debut exclusively online rather than through a physical launch.
Windows Central journalist Jez Corden shed light on the impact of these recent layoffs, specifically highlighting the shutdown of departments dedicated to bringing Xbox games to physical retail.
Corden shared these new insights, stating, "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."
While this move doesn't necessarily imply an exit from the physical games market for Xbox, there's a suggestion that these releases might be given less priority.
Corden said, "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."
While the fate of future Xbox physical media remains uncertain, it appears that Microsoft is increasingly favoring a digital-only approach. This aligns with Xbox's current strategy, emphasizing the digital-only Xbox Series S model and a strengthened focus on expanding its Game Pass library.
The trajectory hints at a shift in the industry, and leaked documents support this, revealing plans for the next Xbox model to mirror the Series X specifications but adopt a digital-only format akin to the Series S. This underscores Microsoft's inclination to steer consumers away from purchasing physical copies of their new and upcoming Xbox titles.
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.
— Jez (@JezCorden) January 25, 2024
Corden also brought attention to other consequences of the recent layoffs, indicating that Microsoft is letting go of almost all internal customer support teams for Activision Blizzard games. The remaining support functions are expected to be outsourced to external companies abroad. Additionally, a substantial number of community managers have also been affected by the layoffs.
However, despite the industry's increasing inclination towards digital purchases, the gaming community doesn't seem entirely ready to part ways with physical games, showcasing a lingering attachment to the traditional format even as digital acquisitions become more prevalent.
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