Microsoft has shut down the Xbox physical games division

Microsoft’s gaming division, which includes Xbox, Bethesda, and Activision Blizzard, announced plans to lay off 1,900 staff.

The layoffs reportedly include the closure of departments dedicated to bringing physical games to market.

Microsoft has reportedly shut down departments dedicated to bringing Xbox games to physical retail. However, this doesn’t confirm that Microsoft is quitting physical retail for Xbox games yet.

Leaked legal documents revealed Microsoft’s plans to launch an “adorably all digital” Xbox Series X console codenamed ‘Brooklin’.

Certain AAA games have 80%+ digital shares on Xbox. Some high-profile games, like Alan Wake 2 and Hellblade 2, are only available to download.

Analysts predict that digital-only releases for consoles will become commonplace over the next few years.

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