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Microsoft is Quietly Moving Away From Physical Xbox Games

Microsoft games are acting differently now. Looking at video gaming from a wider perspective, wants to analyze video games.  The Outer Worlds 2 also perfectly exemplifies this trend – PlayStation 5 users are getting the classic disc version while Xbox Series X gamers have to just settle for a cardboard box that has a download code.

This gap is not limited to just a single title. It forms part of a growing trend. The trend is causing concern among preservation advocates and physical media enthusiasts about the future of Xbox game collecting.

Growing List of Code-Only Xbox Releases

Microsoft’s summer showcase just revealed a lot of games that will have this. Ninja Gaiden 4 will only offer download codes for Xbox, despite being a Microsoft-published title via Koei Tecmo. Tony Hawk’s Pro Skater 3 + 4, which fans are looking forward to getting treated the same way as the last two.

The most telling of all is Gears of War: Reloaded, as it won’t even have a physical box on Xbox, despite getting a full disc release on PS5. Spanish gaming outlet Vandal claims the game will be entirely disk playable, without needing a single download.

The Digital Transformation Timeline

In 2023, the FTC Activision trial leaked indicates Microsoft is looking at creating a digital-only mid-generation console refresh.  By the start of 2024, the company released its main exclusive Senua’s Saga: Hellblade II but without a physical Xbox version. Later Limited Run Games released a physical PS5 version of the game.

In-store retail checks confirmed these fears further with reports of major retailers downsizing their Xbox physical game section and replacing boxed goods with digital code cards.

Microsoft’s Official Stance on Physical Media

According to Gaming CEO Phil Spencer, who spoke about this in February 2024, the business merely follows the purchase patterns of its consumers. Most Xbox customers purchase games digitally so there is no need to make games physically. 

According to Spencer, making the switch to only digital wasn’t really a strategy Microsoft had in mind. That’s because, as he noted, they still support physical media. They just don’t create demand. 

Exceptions That Prove the Rule

Unlike other video games, Indiana Jones and the Great Circle received disc versions for both the Xbox and PlayStation. However, other major releases tell a different story. Avowed, a new video game by Obsidian Entertainment, won’t get any physical release. Similarly, Doom: The Dark Ages features a disc that has less than 1GB of data on it. In short, it is just a very expensive download key.

Call of Duty: Black Ops 7 looks likely to follow the fate of other recent releases in the series, where the disc primarily serves as DRM verification for the game.

Strategic Alignment With Microsoft’s Vision

It fits perfectly with Microsoft’s overall gaming strategy of digital distribution, subscriptions, and cross-console accessibility. With Game Pass Ultimate at $20 per month, subscribers can play The Outer Worlds 2 instead of spending $80 to own it physically, which is not good value for money.

This is helpful to handheld users of PC games like the ROG Xbox Ally, which is also coming but does not have disc drive at all.

Contrast With Nintendo’s Approach

Interestingly, it looks like Nintendo is headed in the opposite direction with the Switch 2. The company may still be making cartridge versions of its first-party titles, but third-party publishers are using game key cards more often to cut down on production costs, similar to what Microsoft is doing with its own games.

Looking Ahead to 2026’s Major Release

2026 marks the 25th anniversary of Xbox, where pre-announcement of games like Fable, Forza and a possible Gears of War: E-Day heading to Xbox could be made. These games will be unlikely to get physical releases for Xbox. Chances are they may come to PS5 but will only get disc versions after the Xbox launch.

Impact on Game Preservation

Many game preservationists see physical media as an important factor for long-term accessibility of video games. When games are only sold as digital downloads and deployed via an online service, they are only as available as corporate decisions about server maintenance/backward compatibility allow.

As Sony’s games become the more preservation-friendly option on Microsoft’s platform, collectors and preservation-minded gamers may find themselves weighing platform choice against this trend as the gap widens between PlayStation and Xbox physical release strategies.

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