By Layoffs are hitting hard across the entire video game industry with Microsoft’s gaming division announcing on Thursday plans for cutting 1,900 staff across Xbox, Bethesda and Activision Blizzard.
Those cuts are said to be wide-ranging across multiple departments from development to customer service.
However, sources for Windows Central editor Jez Corden have pointed out that Microsoft has also apparently shut down departments dedicated to bringing Xbox games to physical retail.
This, combined with the leaked plans for Xbox’s next console to be digital only, has led to the suggestion that Microsoft is seriously considering quitting physical retail for Xbox games.
As Corden points out though, a retail team reduction is far from any kind of confirmation Microsoft’s gaming division is getting out of the physical media sector. He says: “they can outsource, and might be consolidating here”.
But, Corden acknowledges this does seem to be the industry trajectory and says the “writing is on the wall”.
Responding to the claims, Niko Partners exec Daniel Ahma says: “There are certain AAA games with 80%+ digital shares on Xbox these days so it’s not too surprising… Indicative of how next gen will be for sure.”
Source: VGC
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