Xbox is testing a disc-to-digital feature that solves the problem with the next Xbox

Xbox is reportedly testing a new disc-to-digital feature following Sony's recent announcement that it's ending physical disc production in 2028.

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Jak Connor

Tech and Science Editor

Published Jul 2, 2026 1:48 AM CDT
Updated Jul 2, 2026 2:35 AM CDT

2 minutes & 30 seconds read time

TL;DR: Xbox is testing a disc-to-digital feature that converts physical game discs into digital entitlements linked to Microsoft accounts, allowing access across devices. Not all Xbox One discs will be compatible, and this aligns with plans for Project Helix, which may launch without a disc drive as Xbox moves toward digital media.

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Sony recently announced it was ending production of physical disc games, and while Microsoft hasn't announced anything, it's likely only a matter of time before Team Green follows suit.

Xbox is testing a disc-to-digital feature that solves the problem with the next Xbox 2

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We have already heard from an Xbox insider that Project Helix, Xbox's next-generation console, won't release with a built-in disc drive, which Sony's PlayStation 6 is also teeing up to do. However, a new report from The Verge's Tom Warren now says sources have informed him that Microsoft has been quietly working on a disc-to-digital feature that will allow Xbox owners to digitize their current physical game collections.

If these sources are correct, this would mean Project Helix won't, in fact, release with a disc drive, and that Xbox will be following PlayStation's lead in phasing out physical media altogether. Warren reports that Xbox employees are currently testing this new feature, which, funnily enough, seems extremely similar to the "enable Disc2Digital" feature discovered in the Xbox PC app codebase back in May.

Read more: Xbox to convert discs to digital games for Project Helix, new reports indicate

So, how does this work? The report states the new feature will scan your physical copy of the game and create a digital entitlement linked to your Microsoft account. The entitlement is tied to your specific game and disc, so if you let a friend borrow a game, the digital entitlement will be removed from your account and added to your friend's account. Additionally, this same thing will happen between Xbox profiles.

With the digital entitlement, owners will have access to the title from any Xbox device that supports it, meaning if the game is available on Cloud Gaming, it can be streamed, or if it's on Xbox Play Anywhere, they can play it on PC or handhelds. Essentially, the digital entitlement grants an owner access to the game on the Xbox Store; it's proof that the profile currently owns the game. This also includes all downloadable content that comes with some discs.

Unfortunately, Microsoft has told its internal Xbox testers that not every Xbox One disc will work with this new feature, as "It all depends on how and when the disc was manufactured, and it may not have the features we need for this program."

Frequently Asked Questions

TweakBot answers common questions about this news using TweakTown's own coverage from this page and related content from our archive. Tap a question to reveal the answer, or type your own below.

Question 01

Will all my Xbox game discs be eligible for the disc-to-digital conversion, or are there specific manufacturing dates/versions that will be unsupported?

Not all discs will be eligible. Microsoft told testers that eligibility depends on how and when the disc was manufactured, and some Xbox One discs may not have the features needed for the program.

Answered

Question 02

How will borrowing or lending a physical disc affect the digital entitlement — will there be a delay or manual process when ownership transfers between accounts?

The article says the digital entitlement is tied to your specific game and disc, so if you let a friend borrow the disc the entitlement will be removed from your account and added to your friend’s account. The report does not mention any delay or manual transfer process when ownership transfers between accounts.

Answered

Question 03

Will digitized discs include any DLC and pre-order/bonus content tied to the physical copy, or are there exceptions?

Yes. The primary article says the digital entitlement includes all downloadable content that comes with some discs. However, Microsoft warned not every Xbox One disc will work because it depends on how and when the disc was manufactured, so there are exceptions.

Answered

Question 04

If a disc is digitized and linked to my Microsoft account, can I still play the physical disc on older Xbox models that require the disc to run the game?

Yes. The report states digitized discs will still work, so if you digitize a disc and keep the physical copy you can still play the physical disc on older Xbox models that require the disc to run the game.

Answered

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Another important thing to note is that the report states that digitized discs will still work. While Microsoft still hasn't publicly stated or finalized whether Project Helix will launch with a disc drive, judging by recent announcement from Sony, and that Xbox is currently undergoing intense cost reduction measures, it wouldn't be surprising at all if team green decided to save the money on the disc drive and make the full jump to digital next generation.