Xbox is reportedly testing a feature that lets players convert physical game discs into permanent digital licenses

Microsoft is internally testing a new Xbox feature called Disc-to-Digital that would allow players to convert their physical game discs into permanent digital licenses, according to reports. The feature, which was first spotted in Xbox PC app code in May, is now understood to be in testing with Microsoft employees.

The details:

• The process works by inserting a disc, installing the game, and launching it once while signed into a Microsoft account; that one-time step generates a permanent digital entitlement tied to the disc
• The disc itself continues to work normally after conversion and is not rendered useless, with the entitlement also transferable to other accounts if the physical disc is passed on
• Xbox One and Xbox Series X/S discs are supported, including multi-disc editions and bundle copies; Xbox 360 and original Xbox discs are not
• Digital licenses gained through the feature would unlock Xbox Cloud Gaming and Xbox Play Anywhere functionality for supported titles
• The feature has been linked to Project Helix, Microsoft's reported next-generation hybrid console-PC device announced in March; if Helix launches without a disc drive, Disc-to-Digital would offer existing physical collectors a way to carry their libraries forward