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Sony Kills Physical Discs, Xbox Reset Looming, Metroid Ravenous Leaks

Jul 1, 2026 · 20d ago

The video game industry is facing a massive shift today as Sony announces the end of physical PlayStation discs, signaling an all-digital future. Microsoft is preparing for a major Xbox restructuring that threatens several beloved studios, while Rockstar Games faces unionization pressure over Grand Theft Auto VI development.

Sony to End PlayStation Physical Disc Production by 2028

Sony to discontinue physical discs for new games launching on PS consoles from January 2028Sony is killing all physical PlayStation game discsGamesIndustry.bizThe Verge

Sony Interactive Entertainment has announced it will discontinue physical disc production for all new PlayStation games starting in January 2028, citing shifting consumer preferences toward digital media GamesIndustry.bizEurogamerGame Developer. While games released before this date will remain available on disc, all subsequent releases will be digital-only on the PlayStation Store and through digital retail codes The VergeNintendo Life.

This decision has drawn widespread criticism from players and independent retailers who warn of the negative impacts on game preservation, ownership, and the secondhand market The VergeEurogamerThe Verge. Industry analysts suggest this move almost guarantees that the upcoming PlayStation 6 will be a digital-only console VGCPush Square.

Adding to the preservation concerns, Sony also confirmed it will shut down the PlayStation Store for the PlayStation 3 and PlayStation Vita by July 2027 GamesIndustry.bizEurogamer. The phased shutdown will begin in select Latin American markets as early as August 2026 before expanding globally The VergePush Square.

Xbox Reset Threatens Arkane and Undead Labs Amid Layoff Fears

Xbox’s ‘reset’: all the news about Microsoft’s looming layoffs and studio closuresHideo Kojima's New Horror Game Not at Risk of Xbox CancellationThe VergePush Square

Microsoft is reportedly preparing for a major "Xbox reset" under new CEO Asha Sharma and chief content officer Matt Booty to address rising console component costs and an overextended studio system The Verge. Reports indicate that up to five developers within Xbox Game Studios are at risk of closure, including Arkane Studios and Undead Labs, which could result in the cancellation of upcoming projects like Marvel's Blade Push SquareThis Week in Video Games.

Xbox has already severed its publishing and funding agreement with IO Interactive for the online fantasy RPG Project Fantasy, forcing the Hitman developer to face immediate layoffs EurogamerThis Week in Video Games. However, Hideo Kojima's highly anticipated Xbox-exclusive horror game OD is reportedly safe from these cuts Pure XboxVGC.

In a move that contrasts with Sony's physical media shutdown, Xbox is reportedly planning a "Disc-to-Digital" feature Pure XboxVGC. This service will allow players to digitize their physical Xbox One and Xbox Series X disc collections, granting them digital licenses for their existing physical games Pure XboxVGC.

Rockstar Games Workers Demand Union Recognition Over GTA 6 Crunch

UK workers request voluntary union recognition at RockstarGTA 6 devs have to opt-out of crunch, claim Rockstar North insiders, because it's baked into their contractsGamesIndustry.bizRock Paper Shotgun

UK-based developers at Rockstar North have requested voluntary union recognition to address systemic workplace issues as they prepare for the launch of Grand Theft Auto VI this November GamesIndustry.bizRock Paper Shotgun. Multiple employees have accused the studio of effectively baking mandatory crunch into employment contracts, ignoring a widening gender pay gap, and weaponizing fluctuating bonus payments to enforce compliance Rock Paper ShotgunGame DeveloperThis Week in Video Games.

Union members claim that up to a fifth of a worker's salary can be withheld through these bonus structures without justification VGC. Despite the internal turmoil, Rockstar has begun co-marketing the game with Sony, publicly stating that Grand Theft Auto VI will play best on the PlayStation 5 Push Square.

Metroid Ravenous Leaked via Brazilian Government Age Rating

Next Metroid Game for Switch 2 Reportedly Leaked in Age Rating From Brazilian GovernmentMysterious 'Metroid Ravenous' Game Rating Appears OnlineIGNNintendo Life

A new, unannounced entry in the Metroid franchise has been leaked through an official age rating filed with the Brazilian Ministry of Justice and Public Security IGNGematsu. The listing for "Metroid Ravenous" was submitted by Nintendo of America and references a project in active production in 2026 Nintendo Life.

Although the rating was quickly removed from the government database, the leak has sparked intense speculation that an official announcement is imminent for the Nintendo Switch 2 IGNVGC.

Subnautica 2 Legal Battle Ends as Krafton Agrees to Pay Bonuses

Subnautica 2 legal battle ends with reinstated CEO stepping down, as Krafton and Unknown Worlds founders agree settlementPublisher Krafton finally agrees to pay bonuses to every Subnautica 2 staffer as Unknown Worlds CEO Ted Gill leaves againRock Paper ShotgunEurogamer

Publisher Krafton and the founders of Unknown Worlds have reached a final settlement to end their ongoing legal dispute over Subnautica 2 Rock Paper ShotgunGame Developer. Under the terms of the agreement, Krafton has dismissed all pending legal proceedings and agreed to pay promised bonuses to the entire development staff EurogamerGame Developer.

Following the resolution, reinstated Unknown Worlds CEO Ted Gill has announced he is voluntarily stepping down from his position Rock Paper ShotgunIGN.