Microsoft(US:MSFT) Huan Qiu Wang·2025-06-10 08:30Core Viewpoint - Microsoft is accelerating the phase-out of physical game discs for its Xbox Series S|X platform, shifting entirely to a digital activation code model, which has sparked significant backlash from players and retailers regarding the loss of physical collectibles and resale options [1][3]. Group 1: Microsoft's Strategy - The new strategy aims to significantly reduce costs associated with the printing, storage, and logistics of physical discs [3]. - Microsoft is focusing on increasing the growth of its Xbox Game Pass subscription service, which has seen a 35% year-over-year increase in digital subscription revenue for 2024 [3]. Group 2: Industry Response - Retailers like VGP have publicly rejected the sale of "deluxe editions" that only include activation codes, emphasizing that players prefer tangible products over mere codes [3]. - There is a growing movement among Xbox players on social media, with discussions centered around the hashtag "give me back my disc," indicating widespread dissatisfaction with the shift [3]. Group 3: Comparison with Competitors - Other gaming companies, such as Sony and Nintendo, are also promoting digital games but continue to offer physical disc options, as seen with PS5's "Final Fantasy VII: Rebirth" and Switch's "The Legend of Zelda: Tears of the Kingdom" [3].