Xbox head Phil Spencer has revealed that Microsoft will continue to support physical media.
Spencer told Game File that Xbox will follow what players need in terms of how they play games, following concerns that Microsoft is shifting to a more digitally focused business model.
“We support physical media, but there is no need to promote physical media that is disproportionate to customer demand,” he said. “We ship games physically and digitally, but we’re really just following customer behavior.
“I think our job in running Xbox is to give the vast majority of our customers what they want. Today, the vast majority of our customers buy their games digitally.”
Spencer cited hardware costs as a potential problem with manufacturing consoles with physical disk drives.
“Game consoles themselves seem to have become the last consumer electronics device with a drive,” Spencer said. “This is a serious issue in terms of the number of manufacturers actually making drives and the costs associated with that.
“When you think about the gear that goes into a console, there are fewer suppliers and fewer buyers, so the cost of the drive certainly has an impact.”
He added: “But our strategy doesn’t depend on people moving all digitally. And removing the physical is a strategic move for us. It’s not a thing,” he added.
Spencer also mentioned the mass layoffs Microsoft made in January, including 1,900 staff cut from its gaming division, including those involved in physical media manufacturing and sales. It was revealed that the decision was made mainly to adjust the team following the acquisition of Activision Blizzard.
“We have a team responsible for physical retail, including game sales in physical stores,” Spencer said. “So that was what the team did. It wasn’t about us taking away any ability.”
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