Physical game releases were the most popular during the late 1980s until the late 2010s, but started declining in the early 2010s. The decline was due to the emergence of digital copies, which are easier to produce and consume. Some players still prefer physical game discs due to the sense of true ownership, the ability to share them, reduced download sizes, offline access, and preservation of games that may disappear digitally. But it seems like Xbox is ditching physical game releases, and they might completely disappear shortly.
No Physical Release for The Outer Worlds 2
It all started when it was reported that The Outer Worlds 2, an upcoming game by Xbox Game Studios, won’t get a physical release. The game will be released on 29 October 2025 and will be the first major game by Xbox to be out only as a digital copy. Though players can buy a physical box for the game, there will be a download code instead of a game disc inside it. The code will then have to be redeemed online. This makes gamers think that Xbox could follow the same with upcoming games, phasing out physical releases gradually.
Only Digital Copies at Xbox Games Showcase
Fans are up with the guesswork, and they think Xbox is going to completely give up on physical releases. There is no official word from Xbox yet, but it’s quite evident that it could happen soon, as Xbox is pushing out the digital copies of their games harder for a few years. Lately, the games shown at the Xbox Games Showcase 2025, like The Outer Worlds 2 and Call of Duty: Black Ops 7, are listed as digital-only, even if sold in a box, they just include a download code. Whereas, the same games on PlayStation come with physical discs, unlike on Xbox.
Why Xbox is Ditching Physical Game Releases?
As Xbox is owned by Microsoft, there could be a long-term strategy included. Microsoft laid off workers from the Xbox physical retail teams last year, which suggests that selling games on discs is not very important to the company anymore. Xbox could be discontinuing physical game releases for these reasons:
- Focus on Digital Ecosystem: Microsoft is pushing Xbox Play Anywhere and cloud gaming, which only work with digital games.
- More Device Flexibility: Digital games can be played across consoles, PCs, handhelds, and the cloud, but physical discs can’t.
- Cost Cutting & Profit: Digital games are cheaper to produce as no physical disc, packaging, or shipping is required. Plus, they also generate more profit.
- Decline in Disc Sales: Most Xbox players now buy digital games. Over 75% of Xbox consoles sold in 2025 are digital-only.
- Shift in Business Model: Services like Game Pass rely on digital access, and Microsoft might align this with its future strategy.
Summary
We aren’t sure if Xbox is ditching physical game releases, but it’s quite possible. After The Outer Worlds 2 and other games at Xbox Games Showcase 2025 were announced as digital-only, fans think the same would happen with upcoming games. Some fans also pointed out that even big games like Doom: The Dark Ages have very little data on the discs, and most of the game has to be downloaded. Even this strategy could be adopted by Xbox for the upcoming games. Let’s stay tuned for further updates.
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Wow, no disc at all for The Outer Worlds 2? That definitely sends a message. I wonder how this shift will impact gamers in areas with slower internet or data caps—digital access isn’t equal for everyone.
So true! Wondering what Xbox is up to!