Bhardwaj, in an interview with OXM, said the physical market is not diminishing and he expects to both digital and physical products to grow side-by-side into the future.
“I think there's room for both,” Bhardwaj said. “There's a certain type of customer who really wants a physical product, because who doesn't want those steelbook limited editions? I think everybody wants those. And there's a certain kind of customer who will also want the digital.”
Microsoft’s job now, Bhardwaj said, is to meet the expectations and demands of consumers and gamers who will no doubt want both physical and digital products.
“… It's our job to grow with the entire industry going forward, and offer people who want a certain product a certain way, that particular product in that way, and for people who want a physical product, to carry on buying that,” Bhardwaj said.
Xbox Live audience is ageing and that buyer habits are being molded by that as much as technological advancement, Bhardwaj said, and the entirety of the Xbox customer base is growing, ranging from kids to adults.