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Well, the PS5 and XBOX Series X still use disks as their physical media… but yeah, the Series XBOXes in particular could switch over to those storage modules you can slam into the back of the consoles. At least for exclusives - the XBOne has no port for those.
But for PC… I reckon most people buy games on Steam there anyway.
And while I would appreciate swag… I think most developers would only go with cheap non-brandname USB sticks with the logo of the game printed on it, that’s built just good enough to not spontaneously combust if you look at it funny.
As someone who is working as an Azure and M365 admin for a living… yeah, nah, Microsoft. Nah.
I am glad I already made the jump to Linux at home, and frankly, I think Microsoft would be a fool if they pulled through with this.
I bet they’d revert the decision of making Windows cloud-only within a year.