According to reports, Microsoft has laid off all teams responsible for bringing physical game/media releases to retail channels as part of its recent 1,900-employee layoff. This could signal a complete shift by Microsoft to a fully digital future.
Just as the acquisition of Activision Blizzard shocked the gaming industry, Microsoft’s announcement of large-scale layoffs has once again sent shockwaves through the industry. While many details have yet to be revealed, it is known that several Blizzard executives have left the company and that Blizzard’s survival game project “Odyssey” has been canceled.
For now, it seems that the layoffs have had a profound impact on the future of Microsoft’s own Xbox game division, in addition to Bethesda and Activision Blizzard. This is because reports say that Microsoft’s important team questioning the development of Xbox retail products has completely disappeared from the company, and all members have been laid off.
The news was first revealed on Twitter by Windows Central editor-in-chief Jez Corden. According to him, Microsoft has closed the team responsible for physical media development, mainly the department that brings products to retail channels.
He wrote: “If you’ve seen leaks of a pure digital Xbox console… then you know where Microsoft is headed.”
This refers to a new version of the Xbox Series X|S console that was leaked in late 2023. There are reports that they will be launched soon, and the new consoles are expected to be pure digital consoles without optical drives for reading physical games. This has not been confirmed by Microsoft.
And the news actually coincides with another previous report: there is a trend of large retailers removing all physical games from their storefronts. Best Buy announced last year that it would begin removing physical media such as DVDs from its stores. There are also reports that Walmart has also begun removing physical versions of Xbox games from its stores.
Analysis
The layoffs of Microsoft’s physical game division are a significant development that could signal a major shift in the company’s strategy. If Microsoft is indeed moving away from physical games, it would be a major blow to the retail industry and could have a significant impact on the way people play games.
However, it is important to note that this is just speculation at this point. Microsoft has not yet confirmed that it is abandoning physical games, and it is possible that the layoffs were simply part of a broader cost-cutting measure.
Only time will tell what the future holds for physical games and Microsoft’s Xbox game division. However, the layoffs are certainly a sign that the industry is changing.
