Microsoft Expanding Into New Industry Trend

Microsoft's new gaming system, the Xbox One S, will not be compatible with physical cartridges or discs. Instead consumers will have to download games onto the console and then play them. This represents a new move by the industry to push for eliminating the need to physically get games and instead stream them from online. This mirrors the current trend for movies, TV shows, and music.

Moving towards pure streaming in the movie and music industries has seen many companies go out of business. Companies like Blockbuster and Redbox have declined since this trend started gaining popularity. With this move by Microsoft, there are both benefits and drawbacks. On one hand, it will hurt game companies like Gamestop, whose profits mostly come from the sale of games. However on the other hand game companies who make games will be able to earn more profit because they would cut out middle men like Gamestop.

While the console can only hold about 6 games at a time, it has the option for people to store their other games in the cloud while they play others on the Xbox. The move pushes the industry further towards making physical games obsolete and replacing them with streaming only.

Microsoft’s New Xbox One S Won’t Play Videogame Discs