Sony Phasing Out Discs, Xbox Studio Closures, GTA 6 Pre-Orders
Jun 25, 2026 — Jul 2, 2026 · 19d ago
The video game industry is undergoing a seismic shift as platform holders prepare to abandon physical media in favor of an all-digital future. At the same time, massive corporate restructuring at Microsoft and Sony has left major studios in jeopardy, even as anticipation reaches a fever pitch for upcoming blockbusters.
Sony and Xbox Prepare to Phase Out Physical Discs for an All-Digital Future
Sony Interactive Entertainment has stunned the gaming community by announcing it will completely discontinue physical disc production for all new PlayStation games starting in January 2028 . This decision has drawn widespread criticism from players, independent retailers, and indie developers who warn of the negative impacts on game preservation and consumer ownership .
Analysts suggest this move guarantees the upcoming PlayStation 6 will launch as a digital-only console, while Microsoft is reportedly planning a similar disc-free future for its next-generation console, codenamed Project Helix . To ease this transition, Xbox is testing a "disc-to-digital" program to let players digitize their physical Xbox One and Xbox Series X collections . Meanwhile, digital preservation concerns are mounting as Sony plans to shut down the PlayStation Store for the PlayStation 3 and PlayStation Vita by July 2027 .
Microsoft Plans Major Xbox Restructuring and Studio Closures Amid Rising Costs
Microsoft is preparing for a massive "Xbox reset" under new leadership to address rising console component costs and an overextended studio system . Up to five developers within Xbox Game Studios are reportedly at risk of closure, including State of Decay 3 developer Undead Labs and Dishonored developer Arkane Studios, which could result in the cancellation of Marvel's Blade . The fallout has already impacted external partners, as Microsoft severed its publishing agreement with IO Interactive for the online fantasy RPG Project Fantasy, forcing the Hitman developer to face immediate layoffs .
In response to the impending cuts, unionized Xbox employees represented by the CWA are publicly demanding layoff protections . Amidst the turmoil, RPG specialist Obsidian Entertainment is reportedly safe from closures, and Hideo Kojima's upcoming Xbox-exclusive horror game OD remains secure . However, Microsoft is heavily evaluating how the Halo franchise is managed, reassessing its internal structure and resource allocation .
These structural shifts come alongside global price increases for Xbox Series X and Xbox Series S consoles, which Microsoft blamed on skyrocketing RAM and storage costs . The component crisis is affecting the wider industry, with Valve noting that memory prices prevent them from making Steam Machines more affordable .
Sony Lays Off Hundreds of Bungie Developers But Doubles Down on Live Service
PlayStation first-party studio Bungie has laid off 292 full-time employees, wiping out almost the entire Destiny 2 development team after the game fell short of commercial expectations . Despite these devastating cuts, Sony Interactive Entertainment is refusing to abandon its live-service ambitions, with PlayStation boss Hideaki Nishino emphasizing that titles like Helldivers 2 and Marathon remain crucial for attracting a global audience . Nishino also dropped strong hints that the next-generation PlayStation 6 will feature a portable model to meet changing player lifestyles .
Grand Theft Auto 6 Pre-Orders Launch Amid Rockstar Games Union Push
Pre-orders for Grand Theft Auto VI have officially launched, propelling the highly anticipated sequel to the top of the PlayStation Store charts worldwide . Early retail data indicates that PlayStation 5 pre-orders are outpacing Xbox Series X/S versions by a six-to-one margin, prompting Sony and Rockstar Games to co-market the title with claims that it "plays best on PS5" . However, the release has sparked controversy as Rockstar plans to ship the game as a digital-only title or a code in a box to prevent early street-date leaks .
Behind the scenes, UK-based developers at Rockstar North have applied for voluntary union recognition to address systemic workplace issues as they prepare for the November 19 release . Employees have accused the studio of baking mandatory crunch into employment contracts, ignoring a widening gender pay gap, and weaponizing bonus payments to enforce compliance .
Nintendo Switch 2 Showcases Splatoon Raiders as Onimusha Release Date Moves Up
Celebrating a strong first year on the market, the Nintendo Switch 2 is set to receive Splatoon Raiders, a newly revealed single-player roguelite spin-off that blends signature ink-splatting mechanics with randomized runs . Meanwhile, Capcom has unexpectedly pulled the release date for Onimusha: Way of the Sword forward to September 4, 2026, allowing the samurai title to escape an incredibly crowded autumn window on PC, PlayStation 5, Xbox Series X|S, and Nintendo Switch 2 .
Other titles are facing lengthy delays, with Frictional Games pushing its psychological thriller ONTOS to 2027 to fully realize its ambitious design . Similarly, Kinetic Games has delayed the highly anticipated 1.0 launch of co-op ghost-hunting game Phasmophobia to 2027 to prioritize quality over speed . Additionally, the ambitious open-world game Star Wars Eclipse is reportedly at serious risk of cancellation due to ongoing labor disputes and proposed layoffs at developer Quantic Dream .
