Microsoft tests Disc2Digital to bridge physical and digital game libraries

The internal testing phase follows months of speculation after code references were first spotted in the Xbox PC app earlier this year. Once a game is digitized, it functions like any other digital title, granting access through Xbox Cloud Gaming and, where applicable, the Xbox Play Anywhere program on PC and handheld devices. The process requires users to be logged into their console account to verify ownership.

While the physical disc remains operational, the digital license is tethered to the original copy. Selling or gifting the disc effectively transfers the digital rights to the new owner, ensuring the license remains unique to the physical asset. Compatibility currently extends to most Xbox One and Xbox Series X releases, though older titles from the original Xbox and Xbox 360 generations are excluded. By addressing long-standing concerns regarding the permanency of digital purchases, Microsoft is carving out a distinct strategy should it eventually follow competitors like Sony in phasing out physical hardware.