The tech giant is the first major console maker to ditch physical media as the industry pursues real-time streaming of games
Microsoft Corp. is set to release a video game console that won't use discs or cartridges. This the first time a company does this and this could be the first step to an all-digital streaming feature.
This new console will have the same software as the previous Xbox one S model except for the space of physical disks. This new model will come with a terabyte of storage for downloading games and will cost $249. the reason Microsoft is going all digital is because, "Fewer people are buying games at stores, putting the media on the same path as movies and music. Downloads are a boon for publishers, yielding fatter margins since they sidestep packaging and shipping, and giving retailers a cut of the profits." (Needleman). Needleman says that fewer people buy disks nowadays so it is a smart idea for Xbox to sell a console with just cloud memory.
Instead of having to stand up and put the disk inside the console, Xbox wants to make it where you just have to pick up your controller and play. the author also tells us, “This transition to digital gaming is going to happen,” said Piper Jaffray analyst Mike Olson. “It’s just a matter of when, not if.” He predicts nearly all video games will be sold in digital form by 2022." (Needleman). Microsoft wants to stay ahead of their competitor, Sony's PlayStation, so they can get more people to buy their console.
Gamers do have a complain about the storage space in the previous Xbox. They say games take up so much storage that they are only able to download 5 games until the console has reached max storage. This bothers gamers because they want to be able to play as many games as possible with out having to worry about storage. Microsoft responded and said that the new Xbox will have 1 terabyte and this will allow gamers to download up to 10 games at a time.
This article relates to marketing because Microsoft is thinking of new ways to sell their product. They believe that making a diskless console will bring them more profitable and revenue, they're also promoting their new device on social media and all over the web. This is a good marketing strategy because it will bring more consumers in.
I choose this article because I am actually the owner of an Xbox 1 and to hear this is just crazy. I remember back in the day where using disks was the only option. In the span of 10 years, Microsoft has almost eliminated the use of disk. Technology is advancing so fast and im excited to see what the company has for their console.
Source: By Sarah E. Needleman April 16, 2019 5:10 p.m. ET
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