Xbox Reportedly Testing ‘Disc-to-Digital’ Feature

The Verge has reported that XBOX is internally testing a “disc-to-digital” feature that would allow players to digitize their physical game collection. The report comes in the wake of PlayStation announcing that it would end all physical disc production in January 2028. 

The feature would seemingly allow players to convert their physical copies of Xbox One and Series X|S games to digital versions. This would not apply to original Xbox or Xbox 360 games. Discs would still be usable after the transfer and digital entitlement is tied to the specific disc. As such, it can move from account to account if you swap discs with another person, with the only way to lose the entitlement being if you loan or sell the disc to someone else. Currently, XBOX has not yet confirmed if its next console, Project Helix, will be digital only or support physical discs. However, in the wake of these reports, it seems likely that XBOX is at least considering the possibility. 

As XBOX‘s division-wide layoffs loom on the horizon, recent reports have circulated which state that the company is considering shuttering Arkane Studios. Further, XBOX has officially pulled funding of IO Interactive’s Project Fantasy game, marking the cancellation of the project, and leading to layoffs within IOI. The cancellation of Arkane Studios would also result in the cancellation of Marvel’s Blade, initially announced in December 2023.

Reportedly, though, XBOX is debating selling off some of its studios. Some of the studios that may be sold include Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, alongside Arkane. All five studios have recently released games within the last year, or have major titles in development, such as South of Midnight, Kiln, Senua, and State of Decay 3.