In a significant shift in its digital content strategy, Microsoft has announced the cessation of sales for digital films and television shows on its Xbox and PC platforms. This decision, effective from July 18, has been met with surprise as the tech giant confirmed that no refunds will be issued for previously purchased content. However, customers can still redownload their existing shows and movies through the Movies & TV app on their Xbox or Windows devices.
Transitioning Away from Video Content
The official statement from Microsoft’s support site outlines the new direction: “Microsoft no longer offers new entertainment content for purchase, including movies and TV shows, on Microsoft.com, Microsoft Store on Windows, and the Microsoft Store on Xbox.” This marks a notable departure from the company’s previous ambitions, particularly following the Xbox One launch, which was heavily marketed as an “all-in-one home entertainment device.”
During the Xbox One reveal event, the focus was predominantly on television content, a strategy that current gaming chief Phil Spencer has since expressed regret over. Reflecting on the event, Spencer noted, “If you go back and watch [the reveal], what you’ll see is an event that was very much focused on Xbox as a TV platform.” He highlighted that the first piece of content showcased was a TV show, illustrating the initial intent to position the console as a multimedia hub.
With this latest development, Microsoft now encourages users to explore third-party streaming services available on the Microsoft Store, including popular platforms like Apple TV and Amazon Prime. The rationale behind this pivot remains unclear, especially in light of recent organizational changes within the company.
Earlier this month, Microsoft announced extensive layoffs that could affect over 9,000 employees. In the gaming division, the cancellation of the much-anticipated reboot of Perfect Dark and the closure of The Initiative have raised concerns about the future of its gaming projects. Additionally, Rare’s Everwild has been shelved, and several senior developers have departed from the studio. The leadership at ZeniMax Online Studios is also undergoing changes, with Matt Firor announcing his exit amid the cancellation of Project Blackbird, a long-term endeavor at the studio.
