Report: Xbox Testing Disc-to-Digital Feature, Digital Entitlement Tied to a Specific Disc

by Alex Co July 1, 2026 4:27 pm in News
Xbox Testing Disc-to-Digital

Two months ago, we reported that Xbox could be working on a system to turn physical games into digital licenses. Today, more info about that has surfaced, and it seems to be a move in the right direction.

This info is particularly more noteworthy today, as Sony announced they are ceasing production of physical disc versions of their new games starting January 2028.

If Microsoft’s plans pan out, this could make losing physical discs a lot easier to take.

Xbox Turning Discs Into Digital Entitlement That You Can Sell

xbox massive layoffs

In a new report by The Verge (paywalled), it mentions that Microsoft will soon follow Sony and stop the production of physical discs for Xbox games. However, instead of foregoing physical discs entirely, sources familiar with Microsoft’s plans have said that they are working on a disc-to-digital feature that will allow Xbox owners to transform their physical game collections into digital.

Confused? Don’t be. It’s said that Xbox employees are currently testing this new feature, and it will work on Xbox One and Xbox Series X discs (sorry, Xbox 36, original Xbox owners). References to the Xbox PC app code “enable Disc2Digital” were spotted, indicating that this feature was being tested internally.

The report states that getting a digital copy of a game to work is as simple as inserting a compatible disc, installing, and then playing the game. In doing so, people will be required to have a Microsoft account on their Xbox, and this will grant a “digital entitlement” for the physical disc games.

This digital entitlement or license is tied to a specific disc, and is able to move from account to account if you swap the physical game with a friend or log into a different Xbox account, and try to play a disc-based game.

The feature is also said to work with discs that come bundled with a console and multi-disc titles, and will give access to everything the disc has, including DLC.

Expect Xbox Discs Digital Entitlement to Be Transferrable

The disc itself will still work after they’re digitized, and people will only lose a digital entitlement if they loan the disc or sell it to someone else. It’s expected this feature is something Microsoft will talk about in the coming months.

While I still would want next-gen consoles to feature physical discs, what Xbox is doing seems to be far better than just removing physical media altogether. At the very least, players will still be able to loan their game discs to friends, or even sell them, which are the biggest concerns about an all-digital future.

As with any report, take this with a grain of salt for now, though based on what we’ve gleaned, this is certainly something we should expect to be announced officially in the near future. Expect this feature to be fully implemented by the next-gen Xbox codenamed “Project Helix,” which is facing a major crisis due to components.

In related Xbox news, don’t forget, the price of Xbox Series X|S is increasing effective August 1.

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Tags: Xbox
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Alex Co

Father, gamer, games media vet, writer of words, killer of noobs.



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