Microsoft Gaming recently laid off nearly 2,000 employees in the Xbox, ZeniMax, and Activision Blizzard teams, as part of a cost-cutting effort to benefit the gaming segment of the company. Speculation about a future all-digital gaming console was fueled by comments from Jez Corden, indicating a shift towards digital and streaming services. Mat Piscatella from Circana provided context, highlighting the minimal revenue Microsoft Gaming generates from physical game sales compared to competitors like Nintendo and PlayStation.
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