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Microsoft is reportedly testing a new Xbox feature that could make it easier for players to bring their physical game libraries into the digital era as the company continues preparing for its next generation of hardware.
According to a report from The Verge, Microsoft has started internally testing a disc to digital system that would let Xbox owners convert eligible physical Xbox One and Xbox Series X game discs into digital entitlements tied to their Microsoft account.
The feature comes as reports continue to suggest Microsoft is moving toward an increasingly digital future for Xbox.
If released publicly, the feature would give players a way to keep access to their existing game collections without relying solely on physical media, particularly if future Xbox consoles no longer include disc drives.
Xbox’s new disc to digital feature explained
Sources familiar with Microsoft’s plans told The Verge that Xbox employees recently began testing the feature after references to “enable Disc2Digital” appeared in Xbox PC app code earlier this year.
The feature reportedly works by having players insert a compatible Xbox One or Xbox Series X game disc into an Xbox console while signed into their Microsoft account. After installing and launching the game, Microsoft grants a digital entitlement linked to both the account and the physical disc.
Unlike a traditional digital purchase, the entitlement remains connected to that specific disc. If the disc is loaned to someone else or sold, the digital entitlement transfers with it once another player signs in and uses the game.
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The system reportedly will not support Xbox 360 or original Xbox discs.
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Once digitized, players would gain access to the same benefits as a digitally purchased game. If the title supports Xbox Cloud Gaming and the player has an active Game Pass subscription, it can be streamed. Xbox Play Anywhere titles would also become available across supported Windows PCs and handheld devices.
Microsoft is also testing support for bundled console games, multi-disc releases, and downloadable content included with eligible discs. However, the company reportedly warned internal testers that some Xbox One discs may not qualify because “It all depends on how and when the disc was manufactured, and it may not have the features we need for this program.”
The report adds that Microsoft has not finalized whether its next-generation Xbox console, currently codenamed Project Helix, will include a built-in disc drive. If it launches without one, the disc-to-digital system could provide an option for existing Xbox owners to carry their physical libraries forward.
Microsoft’s reported disc-to-digital feature also comes just as the wider gaming industry continues shifting away from physical releases.
Sony recently confirmed it will stop producing physical discs for new PlayStation games beginning in 2028, making Xbox’s reported system a potential way for players to preserve access to existing physical libraries even as future consoles move toward an all-digital future.
