Xbox consoles recently experienced a worldwide outage, during which people were unable to access even disc-based games that should have been playable offline. Service was restored within a day but the impact of this discovery could be significant as tensions run high surrounding the crumbling state of physical media. Microsoft, however, was quick to suppress the negative PR, telling The Verge that discs should have never been affected by the outage in the first place.

"Disc-based entitlement checks should not prevent players from accessing their games and this is by design," said Microsoft tech chief Scott Van Vliet. He went on to confirm that discs go through license checks in the form of verifying entitlements. These entitlements determine what content a user is entitled to access, including when said user is offline, since they're saved directly on the console. Van Vliet clarified that the team caught an issue that stopped the consoles "from correctly using saved entitlements during the outage."

Xbox uses the Smart Delivery system for distributing games that automatically installs the best version of the title for your hardware. Smart Delivery has an alternative implementation called full-disc support, where developers can choose to put all executables of their game on the disc instead of relying on a license to digitally download content. That means when you insert the disc, there's no need to even connect to the internet as the file should be ready to run out of the box. That's precisely what failed to occur yesterday.

The outage itself affected everything from log-ins to application launches, and from online play to this strange issue of discs not running as intended. It was tied to an external service provider suddenly going down, and remaining down, for 16 hours. Xbox relied on that external provider for license and entitlement checks, so when a console failed to connect to those servers, it simply locked out players from accessing the game. It worked as fail-close mechanism instead of the fail-open it should have been, at least for discs.

If you're even a little bit tech-savvy, this probably sounds familiar to you as DRM checks have been a part of gaming for a long time. It used to be limited to just digital releases, but disc-based media has evidently fallen to the same problems as of late. The 100GB storage capacity of Blu-ray discs is a genuine limitation, but that's rarely the cause behind stories like this. Microsoft says it's already working on releasing an update to address this issue, but has not provided a timeline.

Sony faced similar vitriol earlier when the community discovered mandatory 30-day online check-ins had been added to PlayStation 5 and 4 consoles, but that claim was later refuted. In 2024 , Steam came under fire for ambiguity over perpetual licenses as well, which just goes to show that even the Valve isn't safe from this great evil. Now that PlayStation discs will cease to exist by 2028, concerns over ownership tied to physical media are growing every day.

Seagate is on track to start qualification of its hard disk drives featuring 50TB-class capacities in late calendar 2027, with shipments to follow in 2028, the company announced this week. Demand for HDDs is so strong because of the rise of AI and continued strength of the cloud computing business that most drives are sold out through 2028 and negotiations about allocations for 2029 are ongoing.

"Mozaic 5, our 5+ terabyte per disk platform, remains on track for qualification shipments in late calendar 2027," said Dave Mosley, chief executive officer of Seagate, during the company's earnings call with financial analysts and investors.

Mozaic 5 is the company's 3^rd generation platform for commercial hard drives based on Seagate's heat-assisted magnetic recording (HAMR) technology that succeeds Mozaic 3 and Mozaic 4. The Mozaic 5 platform enables the company to build platters with over 5TB capacity and consequently build 10-platter HDDs with over 50TB capacity featuring conventional magnetic recording (CMR) for clients seeking performance and versatility or shingled magnetic recording (SMR) for clients that need maximum capacity to maximize their storage density.

If Seagate preps to initiate 'qualification shipments' of its 50TB-class hard drives in late calendar 2027, then it means that by the time the HDDs have passed all the manufacturer's internal validations, including reliability and durability of heads and media, shock and vibration tests, and longevity tests among many others. It typically takes server OEMs about two to six months to qualify new HDDs for their offerings, whereas hyperscale cloud service providers usually qualify them for six to 12 months. In any case, it is safe to say that Seagate is on track to ship 50TB-class hard drives in calendar 2028 with significant volume ramp in 2029.

These 50TB-class HDDs will come to market just in time to meet exabyte demand from the AI and cloud sectors. Most of Seagate's nearline HDDs have been allocated for 2027 and 2029 under long-term supply agreements (LTAs), with some customers looking to secure supply in 2029.

"Based on the long-term supply agreements in place today, the vast majority of our nearline exabytes are now allocated into calendar 2028," Mosley said. "[…] As our strategic relationships deepen, many are actively seeking to extend planning horizons through 2029 and beyond, which we believe reflects growing confidence in their own long-term infrastructure needs."

Seagate's LTAs not only define exabytes, but also product configuration and prices. As it turns out, both are set for the 'entirety of calendar 2027.' Meanwhile, Seagate is flexible on pricing of drives that are not covered by LTAs as well as newly signed LTAs, so the company is implying price increases, following makers of 3D NAND and SSDs.

"We continue to execute our value-based pricing strategy, balancing a stronger demand environment with our objective of supporting sustainable, profitable growth over the long term," Mosley said.

"Our volume was a little bit higher in fiscal Q4," said Gianluca Romano, chief financial officer of Seagate, during the call. "We think can be maybe a little bit of output available in fiscal Q1. Of course, we are pricing that increased output at a very good price right now."

The key advantage of Seagate's high-capacity drives based on the company's Mozaic platforms is, of course, its HAMR technology, which is gradually increasing its share within the company's nearline HDD shipments. HAMR-based products accounted for a 40% exabyte share of Seagate's nearline HDDs as of early July and are on track to account for 70% of the company's nearline exabytes shipments by early July 2027. Moreover, nearly half of Seagate's nearline capacity will rely on its 40TB-class HDDs featuring its Mozaic 4 platform.

"We expect to achieve our next ramp milestone by exiting calendar 2026 with 50% of our HAMR exabytes on our Mozaic 4 platform," Mosley said.

For the fourth quarter of its fiscal 2026 ended on July 3, Seagate earned $3.629 billion, up from $2.444 billion it earned in the same quarter a year ago. The company's gross margin totaled 52.3%, up from 37.4% in Q4 FY2025, and its net income reached $1.294 billion. The company's FY2026 revenue was $12.195 billion, up from $9.097 billion in the prior year. The net income increased more than twice year-over-year to $3.184 billion, with gross margin reaching 45.6%.