Microsoft's Rumored All-Digital Xbox Could Spell the End of Physical Games

Microsoft's rumored all-digital next-gen Xbox would signal the company pulling out of physical game retail almost entirely.

This could push struggling retailers like GameStop over the edge if Sony also goes all-digital in the future.

Microsoft has made big bets on the future before, like bundling Xbox Live and Kinect. An all-digital console would be another risky move.

The console market seems ready for all-digital based on Xbox Series S sales and Xbox Game Pass success.

Even if some gamers still prefer discs, Microsoft can sell a Blu-ray drive add-on for the new console.