Several major European retailers have decided to stop stocking physical Xbox games, citing a significant decline in sales for physical copies.
The revelation comes from Christopher Dring of GamesIndustry.biz, who shared insights on the Games Industry Microcast, shedding light on the industry's evolving landscape (via VGC).
European retailers halt physical Xbox game sales due to declining sales, aligning with Microsoft's digital focus and restructuring, potentially leading to an all-digital Xbox Series X.
European Retailers Abandon Physical Xbox Games
Dring reported that a prominent publisher disclosed before Christmas that numerous retailers across Europe have chosen not to list Xbox games due to what can only be described as "really low" sales.
The shift is attributed to the Xbox's growing emphasis on digital content consumption, with a senior European publishing executive stating, "Xbox is such a digital console, the physical performance of games is really low."
The move by retailers aligns with recent developments in Microsoft's gaming division. Last month, the company announced mass layoffs, including closing departments dedicated to bringing physical games to market.
The restructuring involves a workforce reduction of 1,900 across Xbox, Bethesda, and Activision Blizzard, indicating a strategic shift in response to changing industry dynamics.
Read Also: PlayStation State of Play Event is Kicking Off Soon: Here's What PS5 Owners Should Expect
Microsoft Goes All-Digital
Insiders suggest that Microsoft's focus on a potential all-digital Xbox Series X console codenamed 'Brooklin,' leaked in September, could be a driving force behind these decisions. Although plans may have evolved, the leaked documents hinted at a November 2024 launch and a $499 price point for the digital-only console.
Industry analyst Daniel Ahmad of Niko Partners contextualized the situation, pointing out that certain AAA games on Xbox already boast digital shares exceeding 80%. This trend reflects the broader industry shift towards digital downloads and sets the tone for the next generation of gaming consoles.
However, it is crucial to note that reducing retail teams doesn't definitively confirm Microsoft's departure from physical retail for Xbox games. Jez Corden, editor at Windows Central, offers a cautious perspective, suggesting that Microsoft might consider outsourcing and could be consolidating its approach rather than altogether abandoning physical retail.
Amid these industry developments, Apple recently announced changes to the App Store, aiming to comply with the European Union's Digital Markets Act. Critics, including Spotify, have denounced the changes, with Xbox President Sarah Bond adding her voice to the dissent (via Engadget).
Bond labeled Apple's new policy as "a step in the wrong direction" and called for a more inclusive future for all.
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