Phil Spencer claims getting rid of physical games ‘isn’t a strategic thing for Xbox’

Microsoft’s head of gaming has claimed that getting rid of physical media isn’t a strategic goal for Xbox, but its support for disc-based games appears far from unwavering.

Legal documents leaked last September potentially laid bare key elements of Microsoft’s gaming strategy for years to come, including plans to launch an ”adorably all digital” Xbox Series X console codenamed ‘Brooklin’.

While its plans may have changed, according to the documents, the console was targeting a November 2024 launch and a $499 price point.

Xbox boss Phil Spencer wouldn’t discuss the leaked console in a recent interview with Game File, but he told the publication that Microsoft will “follow what the customers are doing”.

“We are supportive of physical media, but we don’t have a need to drive that disproportionate to customer demand,” he said.

“We ship games physically and digitally, and we’re really just following what the customers are doing. And I think our job in running Xbox is to deliver on the things that a majority of the customers want. And right now, a majority of our customers are buying games digitally.”

While most AAA games currently receive dual physical and digital releases, some are only available to download. High-profile examples include last October’s Alan Wake 2 and Xbox’s Hellblade 2, which will be released in May.

“Gaming consoles themselves have kind of become the last consumer electronic device that has a drive,” Spencer told Game File. “And this is a real issue, just in terms of the number of manufacturers that are actually building drives and the cost associated with those.”

“But I will say our strategy does not hinge on people moving all-digital,” he added. “And getting rid of physical, that’s not a strategic thing for us.”

During a business update last week, Xbox confirmed that the current Series X/S consoles will not be the company’s last.

“There’s some exciting stuff coming out in hardware that we’re going to share this holiday”, Xbox president Sarah Bond said, “and we’re also invested in the next generation roadmap.

“And what we’re really focused on there is delivering the largest technical leap you will have ever seen in a hardware generation”.

What role physical media will play in the next generation remains to be seen, but the future of digital games seems assured.

In an blog post accompanying the platform holder’s business update, Xbox communications director Jeff Rubenstein wrote: “Xbox players should have confidence in building your digital library in the Xbox ecosystem.

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“We will continue to reward that with the most robust, player-friendly experiences, including backwards compatibility, cross-play, cross-save progression, convenient cloud gaming, and more.”

“There are certain AAA games with 80%+ digital shares on Xbox these days”, Daniel Ahmad, director of research and insights at Niko Partners, claimed last month. “Indicative of how next gen will be for sure.”