Xbox Testing Disc-to-Digital Entitlement as it Aims to Go All-Digital Next Gen

Microsoft is reportedly testing a method to offer digital entitlement for physical game discs, digitizing players’ existing physical game libraries. The company is supposedly looking to stop producing physical game discs for Xbox with the next-gen consoles, alongside Sony.

As reported by The Verge, Microsoft has been quietly working on this feature, as the company’s Project Helix console may not feature a disc drive. Instead, players will have to purchase digital versions of new games from the Xbox Store or redeem codes through physical purchases, much like Grand Theft Auto 6. A disc-to-digital conversion would help transfer physical games from previous generations.

According to the report, references to “enable Disc2Digital” first appeared in the Xbox PC app code in May. The Verge then states that Xbox employees have been actively testing the feature.

It’s later explained that the conversion works by inserting a compatible physical game and playing it. When you play under a Microsoft account on an Xbox console, the company grants a digital entitlement for physical games. Nothing from the disc is lost through this program. This entitlement is then tied to the specific disc and moves from account to account if you log into a different Xbox profile or lend the game to a friend. Afterwards, the entitlement is removed from your account if another account uses the disc.

The digital entitlement game features all the same benefits as a traditional digital game. If you have an Xbox Game Pass subscription and the game is compatible with Xbox Cloud Gaming, you can play the title over the cloud. The same goes for Xbox Play Anywhere. If it’s available to play on PCs and handhelds, you’ll be able to carry over progress and play it on compatible devices.

Based on the report, it sounds like the disc-to-digital conversion method will only work for Xbox One and Xbox Series X/S physical games. It will work with titles bundled with a console as well as multi-disc games like Cyberpunk 2077 Ultimate Edition. That said, some Xbox One discs won’t be eligible as it may not have the features needed. Original Xbox and Xbox 360 games won’t be eligible to use this method either.

The conversation regarding physical game ownership and preservation has been sparked by Sony’s announcement that it will no longer produce discs for its games starting January 2028. It seems unlikely that the PlayStation 6 will ship with a disc drive, which could lead to frustrations with backwards compatibility for physical games from the PlayStation 4 and PlayStation 5 generations.