What does Microsoft's cloud-powered future mean for physical media?

[Administrator]

Microsoft has made it very clear: it sees the future of Xbox not with discs sold in shops over the counter by a sales assistant but with what it calls "connected entertainment services" powered by the cloud.
Yesterday, during a media briefing that saw the announcement of a new developer, Lift London, and a new boss of Lionhead, former Rare chief Scott Henson, Phil Harrison, former high-ranking Sony PlayStation executive and now Microsoft's Xbox boss in Europe, the Middle East and Africa, explained how Xbox will evolve over the years to come.
"As we look to the future of our industry, increasingly the games, the IPs and the content, are going to sit on the cloud, powered by Xbox but accessible through a variety of devices. Rather than our games being device-centric, they will become cloud-centric. This is a general trend you will see more of as we go forward.
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