Microsoft is reportedly testing a new Xbox feature that would allow players to convert eligible physical game discs into digital copies, according to a report by The Verge .
The reported development comes on the same day Sony announced it would stop producing physical game discs for titles released after January 2028.
Microsoft has been testing the disc-to-digital feature since May. The system would allow players to insert an eligible game disc into their Xbox 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 also remaining associated with the original disc. Players would still be able to lend the disc to someone else or sell it on the second-hand market, with the digital entitlement transferring between Microsoft accounts and Xbox profiles. However, the system would not allow unlimited copying of a game for use across multiple accounts simultaneously.
The report notes that the feature is somewhat similar to Nintendo’s game-key cards introduced for the Switch 2.
There are some limitations. Only Xbox One and Xbox Series X game discs would be supported. Older Xbox 360 and original Xbox discs would not be eligible for digitization.
Not every Xbox One game would qualify either. Microsoft reportedly told testers that compatibility depends on how and when a disc was manufactured, stating, “It all depends on how and when the disc was manufactured, and it may not have the features we need for this program.”
The report also comes as speculation grows over Microsoft’s next-generation Xbox console, currently referred to as Project Helix. With Sony reportedly moving toward a digital-only future, questions remain over whether Microsoft’s upcoming console will include a disc drive.
Microsoft has not yet finalized whether Project Helix will launch with a built-in disc drive. However, Windows Central reports that the company’s next-generation console is also expected to remove the disc drive.
Whenever the next generation of gaming consoles arrives, the industry appears to be moving toward a digital-first approach, marking another step away from physical media. The reported absence of a physical disc edition for Grand Theft Auto 6 is also seen as an indication of where the gaming industry may be headed.
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