Xbox is working on a disc-to-digital feature to convert physical games to digital copies

After the backlash around Sony’s recent decision to stop producing physical discs for new PlayStation games in 2028, essentially killing the physical media market for its future releases, news has emerged about Microsoft preparing its own shift with a reported Disc2Digital feature for Xbox App. According to Tom Warren of The Verge, the feature would let players convert physical Xbox Series X|S and Xbox One games into digital entitlements, with references to the system reportedly appearing in Xbox PC app code since May.

Under the current design, players would insert a supported disc, install and launch the game on an Xbox console while signed in with a Microsoft account. The digital entitlement would not be permanently tied to one user, but to the specific disc itself. If the disc is lent or sold, digital access moves with it to the next user, while the previous owner loses access. The original disc would still remain usable on compatible Xbox hardware.

The feature is expected to support Xbox Series X|S and Xbox One discs, including bundled games and multi-disc titles, though Xbox 360 and original Xbox games are reportedly excluded. Compatibility may vary depending on how and when each disc was manufactured. For eligible titles, users with Game Pass could stream them through Xbox Cloud Gaming, while Xbox Play Anywhere support would also allow access on PCs and handhelds. This, however, would be a clear sign that Xbox is following the same path as PlayStation and will stop producing discs for all games on the platform, starting with its next generation, Project Helix.