The Future of Video Games: Microsoft Closes Physical Xbox Stores

In a move that signals a shift towards a completely digital future, Microsoft has reportedly closed down some of its teams responsible for physical sales of Xbox consoles. The video game industry is steadily moving towards a predominantly digital landscape, with Nintendo being the exception. Both PlayStation and Xbox generate the majority of their revenue from digital sources, and this trend has only been accelerated by the COVID-19 pandemic. While PlayStation and Xbox are embracing a digitally-oriented future with the introduction of the digital versions of PS5 and Xbox consoles, recent events indicate that Microsoft is aggressively pushing towards a fully digital future.

One of Microsoft’s goals is to become the market leader in video game industry by 2030, generating over $32 billion in game revenue. Embracing digital distribution is a crucial aspect of these plans. PlayStation already generates a significant portion of its revenue from digital game sales. So, what are the recent events in the industry?

Microsoft recently made the decision to lay off 1,900 employees in its gaming division, impacting three major operational units – Activision Blizzard King, ZeniMax Media, and Xbox Game Studios. These layoffs affected various roles, ranging from programmers to office positions such as marketing, HR, and logistics. Microsoft also took this opportunity to eliminate certain departments responsible for retail sales.

Instead of using quotes from the original article, we can rephrase the information. As highlighted by Jez Corden, the Editor-in-Chief of Windows Central, Microsoft has also dissolved departments responsible for promoting Xbox games in physical retail. This doesn’t mean Microsoft is completely abandoning physical distribution. Rather, internal positions involved in delivering Xbox game discs to stores have been eliminated. It is possible that Microsoft may outsource these tasks to external companies, but given the current landscape, it remains uncertain for how long.

These developments came shortly after Walmart was instructed to remove all physical copies of the game Starfield from store shelves at the request of Bethesda/Microsoft. Walmart also confirmed that it would be removing all physical Xbox games from its stores.

The truth is that a fully digital future was always on the horizon for Microsoft. The company has centered its focus around the digital subscription service Xbox Game Pass, and recent internal leaks suggest that they are planning to produce future Xbox consoles as fully digital devices, starting with a new version of the Xbox Series X codenamed Brooklin. Microsoft may have taken this opportunity to accelerate the realization of its digital plans, aiming to further evolve its Universal Storefront, the Xbox Game Pass subscription model, and potentially introduce advertising within its gaming empire on consoles.

FAQ:

The source of the article is from the blog combopop.com.br