One of last week's biggest talking points was undoubtedly Microsoft's layoff of almost 2000 employees, and (if the rumours are true) the closure of the department that handles physical game launches. Perhaps not entirely surprising given the industry gossip that has been going around that the next Xbox will be completely digital - which is now also backed up by statistics.
Of all game sales on Xbox last year, 90% were digital, and only one in ten games were sold on disc. Maybe it's not so strange that Microsoft is shifting its focus to digital distribution - after all, customers have obviously voted with their wallets. The battle between physical and digital is settled, and people are apparently no longer keen to fiddle with discs.
Industry analyst Mat Piscatella stated,"From Circana's retail tracking service - In the US in 2023, physical spending on software for Nintendo platforms accounted for more than half of total physical software spending. Physical spending on software for Xbox platforms accounted for less than 10% of total physical spend."
Digital is simply more convenient, even if you don't technically own the games. A fact that increasingly doesn't seem to matter to the average person. However, if you look at Nintendo and PlayStation, the figures were markedly different, with physical sales accounting for 50% and 40% respectively. So the question is, why are the differences so great between the platforms? Game Pass?
What do you think, why are digital sales much more common for Xbox compared to PlayStation and Nintendo?
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Thanks, ResetEra.