Microsoft has announced a new Xbox disc-to-digital feature that will let players with supported physical games claim digital entitlements, according to The Verge and Tom's Hardware. The program begins testing with Xbox Insider users on August 31, before a wider rollout to Xbox One and Xbox Series X consoles in the coming months, The Verge reports. The mechanism is straightforward as described by both outlets: a player inserts a supported disc into an Xbox One or Xbox Series X and launches the game, then claims a digital entitlement. Tom's Hardware, citing Microsoft's Xbox Wire announcement, says the feature is intended to bring digital-library benefits to games bought on physical media. Support is broad but not universal. The Verge reports that Jason Ronald, Microsoft's vice president of next generation at Xbox, said most Xbox One and Xbox Series X disc-based games will support the feature. Both The Verge and Tom's Hardware say Microsoft is starting with thousands of titles, with more to be added over time, while not every game will be available at launch. The Verge adds one important implementation detail: the entitlement is tied to the specific disc, not simply detached from the physical copy. In The Verge's description, that means the entitlement can move if the disc is swapped with another player or used with another Xbox profile. That detail matters because it suggests Microsoft is trying to preserve some of the transferability of physical media while adding digital access. The digital version can unlock additional platform benefits where available. The Verge reports that supported games can be played on PC through Xbox Play Anywhere or streamed across devices with Xbox Cloud Gaming. Tom's Hardware also reports Play Anywhere and Cloud Gaming support, with the caveat that those benefits apply only where supported. The Verge says the feature is part of Microsoft's work on game preservation and preparation for the next generation of Xbox consoles. It also reports that a leaked memo indicated publishers will control whether their games participate, which would explain why the launch catalog is large but incomplete. The timing is notable because both The Verge and Tom's Hardware frame the move against a broader industry shift away from physical discs. The Verge reports that Sony has announced it is ending physical PlayStation game discs, with new PlayStation games after January 2028 becoming digital-only, and notes that Sony has not announced a similar conversion path for existing physical libraries. Tom's Hardware similarly describes Sony's move as part of the backdrop for Microsoft's announcement. For Xbox players, the practical change is that some existing disc libraries may become usable more like digital libraries without requiring a separate repurchase. The limits are just as important: support depends on the title, the platform, and, according to The Verge, publisher participation. Who benefits: Xbox owners with supported physical Xbox One and Xbox Series X games benefit most, especially if they also use PC via Xbox Play Anywhere or Xbox Cloud Gaming. Microsoft also benefits by pulling more legacy disc libraries into its digital services layer. Who's exposed: Games not supported at launch, and publishers that opt out, could leave players with uneven library coverage. The feature also does not establish that all physical Xbox games will become digital entitlements.