There are fewer physical versions of Microsoft games as it spends a lot on publishing efforts. This is especially the case for Xbox games. A current case in point is The Outer Worlds 2, from Obsidian Entertainment. While there will be a physical disc of the game for PlayStation 5, the owners of Xbox Series X will only be getting a code inside a box. This further highlights the demise of physical media for the platform.
A Growing Digital Trend in Xbox’s Lineup
During Microsoft’s big summer event, many announced games would be digital-only for Xbox, indicating a change in mindset. Upcoming games on the platform include Koei Tecmo’s Ninja Gaiden 4, Tony Hawk’s Pro Skater 3 + 4 and Gears of War: Reloaded, which will have no physical discs. Interestingly, Gears of War: Reloaded does not even receive a placeholder box for Xbox, even though PlayStation did receive a full physical version. As reported, the PlayStation disc version will not require additional downloads to operate fully.
Signs of a Strategic Shift
The speculation about the Xbox moving away from physical media began in 2023 with the leak from the FTC trial regarding Activision stopping Microsoft from launching a digital-only refresh of the Xbox Series X. We have seen the rumours gaining traction after Senua’s Saga: Hellblade II, the flagship first party, decided to skip on a physical release altogether in 2024. Then we saw images from the major retailers which showcased Xbox shelves replaced by simply code cards. Internal cuts being reported in Microsoft’s retail division sealed the deal for this shift.
Limited Run Games subsequently revealed a physical release for PS5, which made Microsoft look not keen on physical releases, even for their main exclusives.
Microsoft’s Position on Physical Media
According to Phil Spencer, CEO of Microsoft Gaming, the strategy will be revealed in early 2024 and emphasized that physical media still exists at Microsoft. According to him, Xbox is still releasing games in digital and disc form but at least gives priority to how the majority of the customers want – which is heavily digital right now.
According to Spencer, it is not a strategic goal for Xbox to go fully digital. On the other hand, the total number of disc-less game launches is rising. Microsoft refused to reply to latest questions about the rise of digital codes.
Physical Editions Becoming Rare Exceptions
Indiana Jones and the Great Circle is one of the few titles to be receiving a disc release on both platforms, rather suspiciously so. On the other hand, Obsidian’s Avowed is not getting a physical release, while Doom: The Dark Ages actually has less than 1GB of data on the disc and requires a download. Call of Duty: Black Ops 7 will likely have a similar set up. The disc will probably only act as a licence key.
The strategy is part of a larger Microsoft plan that focuses on digital first subscription services, such as Game Pass Ultimate. For the price of $20 per month, players can enjoy an access to new game releases like The Outer Worlds 2 without purchasing the game outright. Game Pass allows access to either Xbox or PC with one code. Thus a user can play on both Xbox and PC. And that is useful for handheld PC gamers using devices like the upcoming ROG Xbox Ally that doesn’t have a disc drive.
Physical Media Versus Digital Convenience
While the digital model is beneficial for those looking for flexibility and saving money, it is disappointing for those who value physical collections and the preservation of games. Not having disc-based choices makes it more difficult to offer long-term access to games given what happens if digital storefronts or licences change.
Nintendo’s upcoming Switch 2 may take a rather different route. In that some third-party publishers are using game key cards to cut costs, Nintendo is still supporting cartridge-based releases. Microsoft is restricting its own games from being available on other consoles.
The year 2026 promises a nostalgia trip for Xbox fans, marking the 25th anniversary of the brand. There are various big releases coming including a new Fable game, Forza, Gears of War: E-Day, and possibly Halo:CE. It’s unclear if any of these titles will have physical releases. Unless something changes with Microsoft, these titles may only arrive when they become available on PlayStation on disc.