Microsoft's decision to cut 1900 staff members has reportedly seen the company's games retail teams reduced, prompting fresh questions over Xbox's future in the physical games business.
Writing on X, Windows Central's Jez Corden said Microsoft had "shut down departments dedicated to bringing Xbox games to physical retail".
Is this the end for boxed Xbox games? Perhaps not yet, Corden continued. Microsoft can outsource physical game production and may be consolidating teams across departments. But the news it has cut staff working on physical game releases comes after Microsoft accidentally revealed it had planned for a digital-only console future as early as this year. And only last week, Microsoft said that one of its key games for this year - Hellblade 2 - would be a digital-only launch.