Microsoft is Reportedly Working on Disc-to-Digital Program for Xbox Games

Sony announced yesterday that it will stop production of physical discs for new PlayStation games in January 2028, and Microsoft may well follow this path. According to The Verge’s Tom Warren, the Xbox team is still on the fence about including a disc drive on Project Helix, its next-gen console. However, the company has started testing a new disc-to-digital program internally that may help to make the transition to an all-digital future a bit smoother.

The report says that the new feature currently only works with Xbox Series X and Xbox One discs. In practice, inserting an eligible disc into an Xbox console and installing the game will grant a digital copy of it to a connected Xbox profile. For gamers, digitizing physical games will provide the same benefits as purchasing a digital copy from the Microsoft Store. Xbox discs will continue to work after a game has been digitized, though the digital license will be lost if someone else uses the disc on their own console.

“This digital entitlement is tied to the specific disc, and it will move from account to account if you swap the physical game with a friend or log in to a different Xbox profile and try to play a disc-based game,” Warren explained. “ If the game is available on Xbox Cloud Gaming and you have a Game Pass subscription, you’ll be able to stream it. If it’s an Xbox Play Anywhere title, you’ll also be able to access it on PCs and handhelds.”

With Microsoft reportedly being unsure about Project Helix supporting physical media, this new disc-to-digital program would allow current Xbox One and Xbox Series X gamers to digitize their current physical game collection before moving on to the next generation. However, Xbox 360 discs won’t be supported, and some Xbox One discs may also not with the new feature. “It all depends on how and when the disc was manufactured and it may not have the features we need for this program,” Microsoft reportedly told internal testers.

Sony’s announcement regarding the end of PlayStation discs received a lot of negative comments since yesterday. As a result, Microsoft will need to be careful about how it’s treating Xbox gamers who invested hundreds, sometimes thousands of dollars into physical Xbox games over the years. Still, this disc-to-digital program may well give longtime Xbox gamers a good incentive to stay in the ecosystem.