The next-gen Xbox Helix is gradually appearing on the horizon, but there’s very big question marks over how it will actually show up.
Microsoft’s attempts to disrupt the gaming industry ended mostly with it disrupting itself, harming its own Xbox console business as well as third-party developers in its ecosystem. As Xbox’s hardware footprint has shrank due to poor marketing and lack of exclusive games, so too has its relevancy on the general gaming stage. The turmoil has been turbo charged by the AI-driven RAMpocalypse, which has seen consumer electronics prices soar due to RAM shortages.
New CEO Asha Sharma has been tasked with reviving Xbox’s gaming fortunes, starting by bringing back exclusive games (including the amazing-looking Gears of War: E-Day), and delivering a barrage of fan-requested features.
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Fans are increasingly wondering how Xbox will respond to PlayStation’s own PR nightmare right now. PlayStation inexplicably announced a gradual phase out of disc-based games on its platform, with discs going away entirely by 2028. Microsoft has moved in the opposite direction, revealing today that Xbox discs will now grant digital entitlements for gamers in that ecosystem, including Xbox Cloud Gaming access and Xbox Play Anywhere.
In conversations with BBC reporter Laura Cress, Xbox CEO Asha Sharma acknowledged the backlash to Sony’s physical phase out.
“I know players love physical media, and I know there’s a lot of benefits in digital media, and I want to make sure people have a choice,” Sharma said. “There are stacks of games on everybody’s shelves. We’re announcing the ability for players for 1,000 titles with physical discs to be able to have a digital entitlement.”
“We’ve long pioneered backwards compatibility and so you’ll continue to see that as we go forward in the generations. This next generation, we have to be thinking about efficiency and affordability alongside performance.”
Will Xbox give disc-loving gamers the lifeline PlayStation won’t?
Speaking to my own Xbox hardware sources, I was told that it’s less about the discs themselves and more about the supply chain around optical disc drives collapsing. Factories and assembly lines previously oriented around making optical disc drives are moving towards other, more lucrative and more scalable industries, such as camera lenses and the like. Demand for optical disc drives revolves entirely around Xbox Series X and PlayStation 5 right now, with laptops, Blu-Ray devices, and other formats essentially phasing out the tech.
Consumers opted overwhelming for digital-only in the last few years, although the downsides are becoming increasingly apparent. The lack of rights consumers have over digital content has come into focus, as licenses can be revoked remotely at any time potentially. At least with a physical game or Blu-ray movie, it’s definitively yours in perpetuity.
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It’s ironic perhaps given the revival of vinyl records in recent years, as more of us seek ownership and hobby-oriented collecting. Digital games, books, and movies don’t create the same sense of participation, and lending games and sharing content with families is obviously much harder generally speaking when the content is tied to a specific account.
Xbox doesn’t have strong family-sharing systems like Steam yet, nor does it come with the ability to re-sell digital games as some have called for. There’s also no legislation in place to refund users when digital games are sunset or revoked.
It’ll be interesting to see how Microsoft and the next-gen Xbox Helix navigates this impending reality for optical disc drive manufacturing, given the widespread backlash to PlayStation’s vocal policies on it.
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