Microsoft is reportedly testing an internal Disc2Digital feature that converts physical Xbox game discs into digital entitlements, potentially paving the way for drive-less next-gen consoles.
Microsoft is internally testing a new function to digitize Xbox discs, according to a report from German tech outlet Heise and corroborated by The Verge. The feature, reportedly codenamed "Disc2Digital," would let players convert physical Xbox One and Xbox Series X|S game discs into digital entitlements tied to a Microsoft account — a step that could help Microsoft launch the next Xbox generation without an optical drive while preserving backward compatibility for disc-based libraries.
The timing aligns with broader industry shifts toward all-digital distribution. Sony recently announced that all PlayStation games will be download-only from 2028, with Blu-ray disc production for PlayStation titles ending in January 2028. Rockstar Games has already followed that trajectory: Grand Theft Auto VI will launch exclusively via download on PlayStation and Xbox, including code-in-box retail editions.
According to the reports, Disc2Digital works by inserting a compatible disc, installing the game, and playing it while signed into a Microsoft account on Xbox. The digital entitlement stays linked to the physical disc and can transfer to another Microsoft account if the disc is sold or traded. Another user on the same console can play the game while the disc remains inserted. Entitlements from older Xbox 360 and original Xbox discs are not supported.
Microsoft is also testing support for games bundled with console purchases and multi-disc titles, though some Xbox One releases may be incompatible depending on how and when the disc was manufactured. Internal testers have been warned that manufacturing differences could block certain titles from the program.
Whether Microsoft's next console — codenamed Project Helix — will ship with a built-in drive or as a digital-only machine remains undecided. Microsoft said in March that developer kits for the next Xbox will not arrive before 2027, suggesting a consumer launch no earlier than late 2027 or 2028.
Read more at Heise.
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