Microsoft is reportedly exploring a new Xbox feature that could allow players to convert eligible physical game discs into digital versions, marking a significant step in the gaming industry’s ongoing shift away from physical media, according to The Verge.
The reported development comes as Sony announced plans to end production of physical game discs for titles released after January 2028, underscoring a broader transition toward digital-first gaming across the industry.
Microsoft has been testing the feature since May. The system would allow Xbox users to insert a supported game disc into their console, play the game, and receive a “digital entitlement” linked to that specific disc.
The digital entitlement would be tied to the user’s Microsoft account and Xbox profile, while remaining associated with the original physical disc. Users would still be able to lend or resell their discs, with the digital license transferring between accounts.
However, the system would not permit unlimited copying or simultaneous use across multiple accounts.
According to the report, the feature would only support Xbox One and Xbox Series X game discs. Older titles from the Xbox 360 and original Xbox consoles would not be eligible for conversion.
Microsoft has also reportedly told testers that not all Xbox One discs will qualify, as compatibility depends on manufacturing specifications and timing. Some discs may lack the required technical features needed for the program.
The move comes amid growing speculation about Microsoft’s next-generation console, currently referred to as Project Helix, which may eliminate the disc drive entirely.
While Microsoft has not finalized hardware details, industry reports suggest the next Xbox could move toward a fully digital ecosystem, aligning with broader trends across gaming platforms.
The shift is further reflected in expectations that major upcoming titles, including Grand Theft Auto VI, may not receive physical disc releases, highlighting the industry’s continued transition toward digital distribution.
