The video game industry’s move away from physical media continues to gain momentum. Days after Sony confirmed it will stop producing PlayStation game discs in January 2028, attention has shifted to Microsoft. Reports suggest the Xbox maker could eventually adopt a similar strategy while also developing a way for players to retain access to their existing disc-based game libraries in a digital-first future.
Sources familiar with the matter have shared new details with The Verge about a previously leaked Microsoft project designed to link physical Xbox game discs with digital ownership rights. The report has renewed speculation that the company could eventually phase out physical game sales.
According to the report, Microsoft is testing a feature that lets Xbox One and Xbox Series X owners convert physical game discs into digital licenses tied to their Microsoft accounts. Players would register a game by inserting the disc into their console. Afterward, the game could be played without the disc, unless it was inserted into a console using a different Microsoft account, in which case the license would move to that account.
The feature would include the same advantages as owning a digital version of the game. Game Pass subscribers could stream supported titles through Xbox Cloud Gaming, and Xbox Play Anywhere games would also be playable on PC. However, the report indicates that not every Xbox One disc would be eligible.
Evidence of the project, codenamed Positron, first emerged in May when code in the Xbox PC app referred to an “enable Discc2Digital” feature. The approach is similar to Microsoft’s original Xbox One plan in 2013, which would have linked physical discs to digital licenses that worked across any console tied to the user’s account, provided they were verified online every 24 hours. Microsoft canceled the feature after widespread criticism before the console’s release, and many observers believe the controversy had a lasting impact on the Xbox brand.
It is still unknown whether Microsoft’s Positron system will include any form of online DRM verification. Even so, the response from players could be very different this time, especially with Sony preparing to phase out physical game discs altogether.
Other reports indicate that Microsoft’s next-generation console, codenamed Helix, may not include a disc drive. According to The Verge, the company has not made a final decision. If Microsoft moves away from optical media, Nintendo would remain the only major console manufacturer still supporting physical games, although many Nintendo Switch 2 game cards already rely on additional digital downloads.
With Sony planning to end game disc production in early 2028, it’s looking more and more likely that the PlayStation 6 won’t use physical media at all. The PS6 and Microsoft’s Helix console are both expected to launch in late 2027 or 2028. Rising memory costs could push prices past the $1,000 mark, and Helix is rumored to play PC games as well as older Xbox titles, showing that Microsoft is rethinking what an Xbox console can be.
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