“We are supportive of physical media, but we don’t have a need to drive that disproportionate to customer demand,” Spencer says. “We ship games physically and digitally, and we’re really just following what the customers are doing. And I think our job in running Xbox is to deliver on the things that a majority of the customers want. And right now, a majority of our customers are buying games digitally.”

“But I will say our strategy does not hinge on people moving all-digital,” he said. “And getting rid of physical, that’s not a strategic thing for us,” Spencer added. 

I’m reading this as saying “Xbox supports discs for now”