Microsoft reportedly tests disc-to-digital conversion for Xbox games

Microsoft is internally testing a Disc2Digital feature that would let Xbox One and Xbox Series X disc owners turn supported physical games into digital entitlements. Insert the disc, install and play the game, then receive a license that behaves like a store purchase and keeps working after the disc comes out.

Once the entitlement exists, the game could benefit from Xbox Play Anywhere support where eligible, giving access on Xbox console, Windows 10/11 PC and supported handhelds at no additional cost. It could also fit Xbox Cloud Gaming’s “Stream your own game” option for select cloud-playable titles you own or buy, which would make a converted disc feel much closer to a native digital purchase.

The system would not cover Xbox 360 or original Xbox discs, so it would only bridge part of the back catalog. More importantly, the digital license is expected to stay tied to the physical disc itself, which means resale and lending would matter in a way they do not with a normal digital purchase. If the disc is sold or transferred, the entitlement is expected to move with it rather than remain pinned to the original account.

It also leaves open the questions players will care about most: whether conversion will require an online check, how proof-of-ownership will work, whether activation happens instantly or on Microsoft’s servers, and which publishers might opt out.

Sony announced that physical disc production for all new PlayStation games will end starting in January 2028, with new releases sold digitally after that point. Digital sales are about 85% of PlayStation game sales.