Good or bad news for your library?
Microsoft’s Xbox is reportedly working on a Disc2Digital program that will convert physical game discs into working digital licenses. What’s more, new reporting suggests the feature will open up to players as early as this month.
As reported by The Verge, the system would encourage players to insert their Xbox One, Xbox Series discs into disc drives on the Xbox One or Xbox Series X — Xbox Series S consoles don’t come with a disc drive, remember — and convert said discs into digital licenses that mean the game could then be played without the disc.
The digital license generated would be attached to the disc itself, however, meaning it could be lent out or sold to another; in that instance, the digital license would transfer from the original account to the new one.
The digital license would come with modern conveniences, so players could take advantage of Xbox Cloud Gaming and Xbox Play Anywhere systems if applicable.
The technology is likely a hold over from Microsoft’s original plans for the Xbox One, and it needs to be noted that Disc2Digital does not work for original Xbox or Xbox 360 discs.
New reporting from The Verge states that Microsoft’s Disc2Digital program will roll out to Xbox players later this month, followed by a larger release of original Xbox backwards compatible titles on PC in October. This will then be followed by a larger catalogue of Xbox 360 backwards compatible titles over 2027 and 2028.
“For both programs [backwards compatibility on PC and Disc2Digital], Xbox manages all engineering, certification, and support efforts. You, the publisher, keeps full control over rights, pricing, and brand; your only lift is opting in and setting commercial terms,” reads a statement from Xbox to publishers through this new reporting.
“Both programs reactivate dormant SKUs, unlock new audiences on PC and handheld, and create ready-made re-release opportunities — no porting efforts required.”
The news comes at the same time Sony has declared its intention to drop physical discs in 2028, leading to speculation that both Microsoft and Sony plan to drop physical disc drives from their next-gen consoles.
The news also follows an announcement by Microsoft that it will lay off 3,200 more employees and rid itself of five of its studios.
This post was first published on 7 July 2026.
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