Xbox’s Strategy Doesn’t “Hinge On People Moving All-Digital” Says Phil Spencer

Physical media is slowly going the way of the dodo. But it appears that Xbox isn’t giving up on it just yet, despite having a disc-less console.

In an interview with Game File, Xbox boss Phil Spencer shared his thoughts on physical media by explaining that Xbox is “supportive of physical media, but we don’t have a need to drive that disproportionate to customer demand.”

“We ship games physically and digitally, and we’re really just following what the customers are doing. And I think our job in running Xbox is to deliver on the things that a majority of the customers want. And right now, a majority of our customers are buying games digitally.”

Spencer then explained that “Gaming consoles themselves have kind of become the last consumer electronic device that has a drive.”

“And this is a real issue, just in terms of the number of manufacturers that are actually building drives and the cost associated with those. And when you think about cogs that we’re going to go put in a console–and as you have fewer suppliers and fewer buyers–the cost of the drive does have an impact.”

Spencer reassured fans of physical media that their “strategy does not hinge on people moving all-digital.” This is especially notable because it was revealed that Xbox is working on a digital-only mid-gen Xbox Series X late last year.

For more Xbox news, check out our story on how Halo devs pitched multiple games that never got made.

Physical media is slowly going the way of the dodo. But it appears that Xbox isn’t giving up on it just yet, despite having a disc-less console.

In an interview with Game File, Xbox boss Phil Spencer shared his thoughts on physical media by explaining that Xbox is “supportive of physical media, but we don’t have a need to drive that disproportionate to customer demand.”

“We ship games physically and digitally, and we’re really just following what the customers are doing. And I think our job in running Xbox is to deliver on the things that a majority of the customers want. And right now, a majority of our customers are buying games digitally.”

Spencer then explained that “Gaming consoles themselves have kind of become the last consumer electronic device that has a drive.”

“And this is a real issue, just in terms of the number of manufacturers that are actually building drives and the cost associated with those. And when you think about cogs that we’re going to go put in a console–and as you have fewer suppliers and fewer buyers–the cost of the drive does have an impact.”

Spencer reassured fans of physical media that their “strategy does not hinge on people moving all-digital.” This is especially notable because it was revealed that Xbox is working on a digital-only mid-gen Xbox Series X late last year.

For more Xbox news, check out our story on how Halo devs pitched multiple games that never got made.