Microsoft is working on a new feature called Disc2Digital, which aims to enable Xbox users to convert their disc-based games into permanent digital licenses. This move could make the transition to a more digitally distributed future easier without abandoning current game libraries.

A recent report revealed that Microsoft has already started testing the feature internally after references to it were found within the Xbox app on PCs last May, indicating that the company is preparing to launch it as part of its future plans.

How does the feature work?

Disc2Digital works by inserting a compatible game disc into an Xbox device and then installing the game. The system will then provide the user with a permanent digital license for that title. After that, the game can be played digitally, taking advantage of features such as streaming through Xbox Cloud Gaming for Game Pass subscribers or playing on PCs and other devices if they support Xbox Play Anywhere. It is also said that the feature will support multi-disc games and versions containing downloadable content (DLC), giving users a more complete digital experience.

Restrictions to be aware of

According to the report, the feature will only work with Xbox One and Xbox Series X/S game discs. It will not support Xbox 360 discs or the original Xbox console. Some older Xbox One discs may also not be compatible due to differences in their manufacturing process.

Although the game will be converted to a digital version, the physical disc will still be usable; however, selling or lending the disc will transfer the associated digital ownership rights according to Microsoft's protection mechanism that it is testing.

Ready for the new generation

The report believes that this feature may be part of Microsoft’s preparations for its upcoming Xbox console, known internally as Project Helix, which has not yet been decided whether it will come with a disc drive. If released without a disc reader, Disc2Digital could provide a practical way to transfer physical game libraries to the new platform.

This step comes at a time when the video games industry is gradually moving towards digital distribution, while Sony faces criticism after announcing that it would stop producing new PlayStation game discs from 2028 without announcing a similar mechanism to ensure the transition of ownership of physical games to the digital format.