Reports indicate that Microsoft has let go of the team responsible for bringing physical media to retail, signaling Microsoft’s pivot to an all-digital future.

The gaming community was rocked by the announcement ofmass layoffs at Microsoft, with some 1,900 employees reportedly being let go.

While many of the finer details have yet to be revealed, it is known that several Blizzard executives have left the company and games like thesurvival title Odyssey have been canceled.

It’s now starting to look like the layoffs may have far-reaching implications for the future of Xbox, too, as reporters indicate a major Microsoft team is no longer with the company.

Microsoft reportedly lays off team that developed Xbox retail products

Microsoft reportedly lays off team that developed Xbox retail products

The revelation comes in the form ofa tweet from Jez Corden, managing editor of Windows Central.

According to Corden, Microsoft closed the team responsible for the development of physical media – specifically bringing those products to retail.

“If you’ve seen the digital-only Xbox console leaks…well, you can get an idea of where Microsoft is going here,” Corden says.

Microsoft has also shut down departments dedicated to bringing Xbox games to physical retail … which if you’ve seen the digital-only Xbox console leaks … well, you can get an idea of where Microsoft is going here.

The One S All-Digital was the same basic shell as the Xbox One S, but missing the optical drive. It laid the groundwork for Microsoft’s two-prong next-gen strategy, consisting of the Xbox Series X and its budget-friendly, lower-powered little brother, the Xbox Series S.

Christopher Baggett was a TV & Movies Writer on Dexerto’s US team and a comics expert, across DC Comics and Marvel. He also has bylines at ComicsBeat, Comic Book Resources, and The HomeWorld.