Report: Xbox Disc-to-Digital Feature in Testing, Microsoft “Likely” to Stop Disc Production Too

Both Sony and Microsoft are moving toward all-digital console futures. Sony’s announcement that it will cease physical PlayStation game production beginning January 2028 effectively confirms the PS6 will launch without a disc drive. Following this precedent, Microsoft is reportedly planning a similar approach for Project Helix, its next-generation Xbox console.

To preserve backwards compatibility during this transition, Xbox is currently testing a disc-to-digital entitlement program that would convert physical game ownership to digital licenses for Xbox Series and Xbox One titles. This feature would allow players who own physical copies of older games to access their libraries digitally on the all-digital Project Helix hardware.

Microsoft has not officially confirmed plans to discontinue Xbox disc production, but sources suggest it is “likely” the company will follow Sony’s timeline. The move represents a significant industry shift away from physical media, mirroring trends in PC gaming where digital distribution has become the industry standard.

This transition raises concerns about game preservation, consumer access to owned games, and the impact on the second-hand market for physical titles. Both companies face pressure to ensure their digital ecosystems maintain adequate backwards compatibility and consumer goodwill as they transition away from decades of disc-based gaming.

Report: Xbox Disc-to-Digital Feature in Testing, Microsoft “Likely” to Stop Disc Production Too

Sources