Xbox Will Reportedly Allow Users to Digitise Physical Games, Ship Project Helix Without Disc Drive

Xbox is reportedly following PlayStation into a discless future for its consoles and games. The company is said to be working on a feature that will let Xbox users digitise their physical game collections as it looks to abandon the disc format, as well. To that end, Microsoft will reportedly launch the next-generation Xbox console, Project Helix, without a disc drive.

Sony announced this week that it would discontinue production of discs for all new games coming to PlayStation consoles starting January 28. The announcement has elicited sharp reactions from gamers and industry insiders, but it seems platform holders are ready to embrace an all-digital future.

Xbox Testing Disc-to-Digital Feature

According to The Verge, Microsoft will likely follow Sony and stop production of physical discs for Xbox titles. But the company is also readying a solution for Xbox users with physical game collections dating back years. Citing sources familiar with Microsoft's plans, the report claims that the Xbox parent is working on a disc-to-digital feature that will allow Xbox users to digitise their physical game collections.

Testing is said to have begun on the feature as references to “enable Disc2Digital” were spotted in the Xbox PC app code in May. Unlike full backwards compatibility on Xbox consoles, the disc-to-digital feature will reportedly only support Xbox One and Xbox Series S/X physical games.

As per the report, the disc-to-digital feature will grant users a digital entitlement for the game once they insert a compatible disc, install the title, and start playing on an Xbox console. Crucially, the digital entitlement will be tied to the disc and will be transferrable — that means you can lend the disc to a friend, and the licence will move to their account. Discs will continue to work once they're digitised and will be required to transfer the digital entitlement for the game to a new account.

The feature is currently undergoing internal testing, but Microsoft may announce it in the coming months, especially since Sony has now confirmed its all-digital plans for PlayStation.

No Disc Drive on Project Helix

Additionally, the next Xbox console could ditch disc drives, too. According to Windows Central, Project Helix will likely arrive without a disc drive, as is speculated for the PS6. If both Xbox and PlayStation consoles come without optical drives, console gaming will mostly be staring at an all-digital future.

Microsoft has not yet announced a launch window for the next Xbox console, but reports and leaks have pointed to a 2027 release. Project Helix, however, may be delayed due to ongoing memory and storage shortages and resulting price hikes driven by intense AI demand. Xbox is also in the process of reseting its business across hardware, content, and services. The company is exploring new business models for the next-gen Xbox, which could see it partner with third-party OEMs.

Analytics firm Ampere expects the PlayStation 6 to launch in late 2028. Following Sony's announcement on physical games, Ampere said the PS6 would "almost certainly" won't arrive before 2028. Sony has not yet confirmed its plans for the next-generation PlayStation console.