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Why Xbox is Shifting to Digital Distribution: Gamereactor.cn Analysis

by Alexandra Hartman Editor-in-Chief

2024-01-30 08:29:51

Text: Marcus Persson – Gamereactor.cnOne of the biggest talking points of the last week was undoubtedly Microsoft’s layoff of nearly 2,000 employees and (if the rumors are true) the closure of the division that handles physical game releases. Perhaps not entirely surprising, as there have been rumors that the next Xbox will be entirely digital – and now the statistics back it up. Last year, 90% of all game sales on Xbox were digital, with only one in ten games sold on disc. Perhaps it’s no surprise that Microsoft is shifting its focus to digital distribution – following all, customers clearly vote with their wallets. The battle between physical and digital has been resolved, and people are clearly no longer interested in tinkering with discs.
Industry analyst Mat Piscatella said, “In the United States, physical software spending on Nintendo platforms will account for more than half of total physical software spending in 2023, according to Circana’s retail tracking service. Physical spending on Xbox platform software accounts for less than 10% of total physical spending.
Digital is more convenient, even if you don’t technically own the game. To the average person, this fact seems less and less important. However, if you look at Nintendo and PlayStation, the two numbers are significantly different, with physical sales accounting for 50% and 40% respectively. So the question is, why are there such big differences between platforms? Game Pass? What do you think, why digital sales are more common for Xbox compared to PlayStation and Nintendo? Thanks, ResetEra
Source: Gamereactor.cn

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