Xbox and PS5 Ditch Discs, Onimusha Moved Up, Ontos Delayed
Jul 2, 2026 · 19d ago
The gaming industry is bracing for a massive shift as both Sony and Microsoft prepare to abandon physical media in the coming years. Amidst these platform-level changes, major publishers are reshuffling their autumn release calendars to avoid crowded launch windows, while highly anticipated horror projects face lengthy delays.
PlayStation and Xbox Prepare for All-Digital Future as Physical Discs Phase Out
Sony has stunned the gaming community by announcing plans to cease the production of physical game discs starting in January 2028 . The decision has drawn sharp criticism from fans, independent retailers, and boutique physical publishers who warn that the move threatens game preservation and consumer ownership . Acclaimed indie developers, including Animal Well creator Billy Basso, expressed devastation over the news, noting that physical releases are a major motivator for creators .
Analysts now expect the PlayStation 6 to launch as a digital-only console in late 2028 . Microsoft appears poised to follow a similar path with its next-generation console, codenamed Project Helix, which reports indicate will launch without a disc drive . To ease the transition and preserve backward compatibility, Xbox is reportedly testing a "disc-to-digital" entitlement program that would allow players to digitize their existing physical game collections . The Video Game History Foundation has called on the Entertainment Software Association to find legal solutions for preserving digital-only games, warning that relying on future emulation is not a viable strategy .
Obsidian Entertainment Safe From Xbox Closures as Microsoft Evaluates Halo
Rumors circulated that Obsidian Entertainment, the developer behind Avowed and The Outer Worlds, was negotiating with Microsoft to avoid studio closure amid a broader Xbox restructuring . Subsequent reports have debunked these claims, confirming that the RPG specialist is not at risk of shutting down . Other experimental projects, such as Hideo Kojima's upcoming horror game OD, are also reportedly safe from the ongoing budget cuts at Xbox .
While Obsidian remains secure, Microsoft is heavily evaluating how the Halo franchise is managed . Though the iconic sci-fi series remains a key pillar of Xbox's future plans, leadership is reportedly reassessing its internal structure and resource allocation . This corporate restructuring comes as other studios face harsher realities, with OtherSide Entertainment's Thick as Thieves studio reportedly laid off down to fewer than ten employees .
Capcom Pulls Onimusha Way of the Sword Release Date Forward to September
Capcom has unexpectedly moved the release date for Onimusha: Way of the Sword up by three weeks . Originally scheduled to launch on September 25, 2026, the highly anticipated action-adventure revival will now arrive on September 4, 2026 . The game is set to launch simultaneously on PC, PlayStation 5, Xbox Series X|S, and Nintendo Switch 2 .
The sudden schedule shift allows the samurai title to escape an incredibly crowded late-September release window . Developers had previously stated they were not intimidated by the autumn competition, but the new date gives the game breathing room ahead of other major releases .
Frictional Games Delays Psychological Thriller ONTOS to 2027
Frictional Games, the acclaimed studio behind SOMA and Amnesia: The Dark Descent, has delayed its upcoming sci-fi psychological thriller ONTOS to 2027 . Originally slated for a late 2026 release, the game requires additional development time to fully realize its ambitious design . Kepler Interactive will publish the title on PlayStation 5 and PC when it eventually launches .
According to the developers, the extra time will ensure the game meets the high standards of psychological horror that fans expect from the studio . The delay also helps the project avoid the chaotic late-year release window of 2026 .
Valve Steam Machines Launch to Mixed Reviews From Early Adopters
The first wave of Valve's new Steam Machines has officially arrived in the hands of early adopters, though many customers remain stuck on a waitlist . Initial impressions of the hardware have been mixed, with former PlayStation executive Shuhei Yoshida expressing disappointment . Yoshida noted that the console is hard to recommend at its current price point, comparing the user experience unfavorably to the PlayStation 4 era .
In other hardware and industry news, Empire Interactive has abruptly withdrawn from its planned 3DO console revival project due to complex legal disputes over intellectual property rights . Subnautica 2 developer Unknown Worlds announced that its CEO is stepping down as staff prepare to receive a massive $250 million payout bonus from parent company Krafton .
