Microsoft is internally testing a disc-to-digital feature that converts Xbox One and Xbox Series X/S physical game discs into digital licenses tied to the specific disc [1, 2, 3, 4, 5, 6, 7]. The feature does not support Xbox 360 or original Xbox discs [1, 2, 3, 4, 6, 7]. Once a disc is digitized, the digital entitlement remains linked to that physical disc and transfers between accounts if the disc is lent or sold, though only one account can use the game at a time [1, 2, 3, 4, 5, 6, 7].
Not all Xbox One discs will be compatible; Microsoft said, "It all depends on how and when the disc was manufactured and it may not have the features we need for this program" [3]. Digitized games will retain access to bundled and downloadable content where applicable [3]. The feature will also enable streaming the digitized games via Xbox Cloud Gaming for Game Pass subscribers if the game supports it [3, 6, 7].
References to the feature appeared in Xbox PC app code in May 2026, marking the start of internal testing [3]. Microsoft has not publicly launched the feature yet and continues testing [1, 2, 3, 4, 6, 7].
The testing comes amid reports that Microsoft's next-generation Xbox console, codenamed Project Helix, may not include a disc drive, following Sony's PlayStation 6 direction [1, 2, 4, 5, 6]. However, Microsoft has not officially confirmed whether Project Helix will drop the disc drive, with some reports indicating no final decision has been reached [1, 2, 3, 6]. Alpha development kits for Project Helix are expected to roll out in 2027 [2].
Sony is set to stop producing physical game discs for new releases starting January 2028, accelerating the industry's shift toward all-digital gaming [1, 2, 4].
The disc-to-digital feature is seen as a bridge allowing players who own physical games to transition smoothly to future all-digital consoles [5, 6, 7].
