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Xbox resurrects disc-to-digital transfer 13 years after disastrous DRM attempt

Microsoft is testing a new Xbox feature that converts physical game discs into digital licenses, reviving a plan that sparked fierce backlash in 2013 due to strict DRM restrictions.

AI News Feed · 2026-09-02 14:59

Players in the test program have reported successfully claiming digital versions of scratched discs, as well as games like Lego Dimensions that had long been removed from digital storefronts. The converted licenses also support features such as Xbox Play Anywhere and Xbox Cloud Gaming, allowing games to be played on PC, phones, or on a discless Xbox Series S. However, the system is not yet fully transparent; Microsoft says thousands of games are supported but has not published a complete list. Some titles, including Forza Horizon 3 and Final Fantasy XV, reportedly fail to convert for certain users due to licensing issues.

The concept echoes Microsoft's original vision for the Xbox One in 2013. That plan would have let disc-based games be tied to an account and played without the disc, but it also required the console to check in online every 24 hours and imposed strict restrictions on reselling or sharing discs. The backlash was immediate and massive, leading Microsoft to reverse the policy in June 2013. The company also abandoned the related disc-to-digital conversion plan.

This time the technical approach has changed. Blu-ray discs used in Xbox One and Xbox Series X games contain a unique identifier called PMSN, which allows Microsoft to recognize each physical disc individually. This enables the new feature to work without always-online checks. The digital license is revocable: if a disc changes hands, the new owner can claim a license, which automatically cancels the previous owner's entitlement. Resale, lending, and gifting of physical discs therefore remain possible, with the disc itself acting as the key that determines digital ownership.

Despite the improvements, the feature has limits. It depends on agreements with third-party publishers, so some titles with expired copyrights may not be convertible. The digital license also remains tied to Microsoft's authentication servers, meaning it is not a permanent offline archive. Still, former PlayStation executive Shuhei Yoshida, who appeared in Sony's famous 2013 video mocking the original Xbox One policy, praised the new move on social media, calling it “A great move by team Xbox.”