Xbox Maintains Commitment to Physical Media Amid Digital Shift

Phil Spencer emphasizes the importance of customer demand and strategic balance in Xbox's approach to game distribution.

Phil Spencer, Xbox's head, reaffirms the company's commitment to physical media despite the industry's digital shift.
Spencer highlights the importance of meeting customer demand, noting that while digital sales dominate, there's still a significant market for physical games.
The recent layoffs at Microsoft's gaming division, including those involved in physical media, are attributed to strategic realignment rather than a move away from discs.
Spencer discusses the challenges of maintaining physical disc drives in consoles due to manufacturing costs and declining consumer electronics with drives.
Despite the digital trend, Xbox plans to continue offering both physical and digital game options, reflecting a balanced approach to media distribution.