Phil Spencer seems to be keeping a calm eye on the growing consumer demand for digital games, even as he dispels recent rumors that Xbox is ditching physical discs altogether.
In a recent interview with Game Files, journalist Stephen Totillo asked Spencer: stone tablet of rumors Last month, Xbox shut down its physical game production division, a situation made worse by leaked court documents showing a souped-up all-digital Xbox was in development. Spencer addressed many of his recent Xbox rumors on last week’s podcast and in his Xbox Wire post, but skipped the physical gaming question until pressed in an interview with Game File.
“Game consoles themselves have become, in some ways, the last consumer electronics with a drive,” he said. “And this is a serious problem in terms of the number of manufacturers that are actually making the drives and the costs associated with that. And when you think about the gear that goes into the console, the suppliers are also buying Because there are fewer people, the cost of the drive has an impact.
“But I would like to say that our strategy does not depend on people moving all digitally,” he added. “And taking away the physical stuff is not a strategic thing for us.”
He also told Totilo that while reports that Microsoft has laid off people from teams responsible for physical games are true, they are more about “team alignment across ZeniMax, Activision, and Xbox.” That’s why we have a team responsible for physical retail, which includes selling games in physical stores. That was what the team did. It wasn’t about us abolishing that ability. ”
Digital games have been on the rise since their introduction, and in recent years, many publishers have seen digital games dominate their total revenue. For example, Take-Two just reported earlier this month that his 95% of the company’s total net bookings are from digital. While Take-Two is an extreme example, other publishers aren’t far behind, so it’s surprising that a company like Xbox could at least back off from releasing all of its games as physical versions. It’s not something you should do. In fact, games like Alan Wake 2 and Like a Dragongaiden: The Man Who Erased His Name still use discs, even as companies like Best Buy begin to phase out physical media sales. It is completely abolished.
For now, Xbox seems committed to continuing to offer at least some physical games. But don’t be surprised if more and more games from all publishers go digital in the coming years.
Rebekah Valentine is a senior reporter at IGN. Do you have any story tips? Send it to rvalentine@ign.com.