After Sony announced plans to abandon physical discs by 2028, all eyes turned to Microsoft to see whether its next-gen console, codenamed Project Helix and described as “an open-platform hybrid PC-console,” will continue to support physical media.
Microsoft has largely stayed silent (though there are plenty of reasons to keep an easily accessible 4K Blu-ray drive for consumers). One big hint that Xbox may be gearing up for a disc-less future, though, is the rollout of a feature called Disc to Digital.
The new tool lets players claim digital copies of their Xbox Series X or Xbox One physical games, making them accessible anywhere they can log into their Xbox account. After a month of beta testing for Xbox Insider users, the feature is now open to everyone, and you don't even need an Xbox Game Pass subscription. In theory, it allows anyone to archive their physical collections—but it’s not without a few complications.
Insert Disc to Continue
So, how does it work? It’s almost as easy as just popping the disc into your console, but not quite. Microsoft says “playing any supported Xbox One or Xbox Series X game disc while signed in will grant you a digital license of that game.” In my experience, this didn’t happen automatically when I launched a game disc.
Instead, pressing the menu button while hovering over the game tile on the Xbox home screen brings up an option to “Claim Digital License.” If it’s supported (more on that in a moment), you’ll get a pop-up showing “Digital license unlocked.” Disc-to-Digital games are tied to your Xbox account rather than your console, and appear in your library with a new icon on the game tile, a disc “disintegrating” into bits of data.
You can then install the game and any updates, then play without the disc in the drive. This will start automatically if you have “Play disc automatically” enabled in your system settings: Go to Profile & system > Settings > Devices & connections > Disc, and turn that option off to keep on top of storage space.
Thankfully, claiming digital licenses isn’t restricted to the current-gen Xbox Series X—it also works on Xbox One consoles with a disc drive. If you upgraded to the disc-less Xbox Series S or the all-digital Series X but still have an Xbox One, this opens a new path for backward compatibility: redeem physical games on the last-gen model, then install them digitally on the newer console. Overall, it's a remarkably simple and welcome process.
Keep in mind you can play digital Xbox One games from an external HDD if you're limited on storage, but Xbox Series games must be installed on either the Series X or Series S internal SSD or an official expansion drive. All storage is pricey right now (thanks, AI), but these proprietary format cards are especially so, ranging from $200 for Seagate’s 1-terabyte model to $550 for 4 TB.
Disc Read Error
The main issue? Disc to Digital is far from universal—not every Xbox Series X and Xbox One game disc is supported, and Microsoft doesn't have an official list of which games are.
First-party titles such as Halo, Gears of War, or Forza Horizon are safe bets, but this doesn’t extend to legacy titles—for instance, Fallout 4, released for Xbox One in 2015, can’t be redeemed as a Disc-to-Digital title yet, despite Microsoft acquiring developer Bethesda in 2021. Third-party games are entirely hit and miss. The Warner Bros. Interactive-published The Lego Ninjago Movie Video Game worked, but Capcom’s Dead Rising 3 didn’t.
The language is also confusing about why you might not be able to redeem a game. One disc gave the error “Digital license unavailable: This game is not participating in digital licensing. You can still play with the disc inserted.” Another showed “This disc doesn’t support a digital license: This disc can’t be used to get access to a digital license. This could be because it is an unsupported disc, or because the disc is damaged. You can still play with the disc inserted.” (And I could, putting the damaged disc theory to rest.)
In many cases, this is likely down to Xbox still negotiating with partners to include their titles. As more publishers come on board, expect more compatible discs. Right now though, the lack of clarity on which games can be redeemed, or what happens when they can’t, makes the whole process a crapshoot.
Sadly, this isn’t a golden ticket for all-encompassing backward compatibility, either. It’s strictly limited to Xbox One and Xbox Series games, likely because those consoles have unique identifiers for those discs. Xbox 360 and original Xbox discs didn’t, which could lead to a literal free-for-all of digital licenses if you could ‘rip’ a game and then pass on or sell the disc for someone to do the same.
This does create another point of confusion, though. When you claim the Disc-to-Digital license for a compatible game, you’re told, “Your digital license is linked to your disc. To ensure your digital license stays in your library, keep possession of your game disc.” That sounds contradictory, given the system also removes the need for a disc to play. After all, after claiming the license for Lego Ninjago on my Series X, I installed and played it on my Xbox One without ever inserting the disc.
Microsoft hasn't clarified whether this means the Disc-to-Digital license will need to be renewed by periodically re-inserting the disc. It’s a big “watch this space” for now, but you probably shouldn’t sell off your disc-drive consoles or physical game collections just yet.
Play Anywhere?
The games you can redeem aren’t necessarily accessible across your devices, either. You still need to keep compatibility in mind—you can play newly digitized Xbox One games on an Xbox Series console, but not the reverse. PC players using the Xbox app can install their Disc-to-Digital games if they’re also included in Microsoft’s Play Anywhere catalog. The same applies to Xbox Cloud Gaming—if it’s not in that catalog, you can't play it, even if it's associated with your Xbox account.
Speaking of which, Microsoft recently capped cloud gaming access, saying that “the cost of providing cloud gaming grows as more people use it,” glossing over the cost and impact of AI infrastructure on server-side components and service provision. Game Pass Ultimate subscribers are now limited to 15 "free" hours per month, 10 for Premium users, and a meager five for those on the Essential plan. Beyond that, users must purchase additional streaming time through the Xbox Store. Even if your Disc-to-Digital game is in the cloud library, you may not get much play time if you want to run it through Cloud Gaming.
That’s a few caveats to keep in mind, but most of them should improve with time, as Microsoft refines the service. For the most part, Disc to Digital works "out of the box" and provides a great way for players to streamline their collections. It feels timely, too—as game install sizes have exceeded disc capacities, the discs themselves have become glorified installation packs, so why not make them a passkey to the digital version that gets installed anyway?
Whether Disc-to-Digital's arrival means the next Xbox will be entirely digital remains to be seen. Right now, it’s a great feature for Xbox players—easy to use, convenient, and surprisingly consumer-friendly. If Microsoft can build toward universal support, this could be its killer feature … at least for the rest of this console generation.