Both Tom's Hardware and Engadget report that Microsoft has rolled out its Disc to Digital feature to all Xbox players, after an initial test with Xbox Insiders in August. The feature lets users insert an eligible Xbox Series X or Xbox One disc while signed in, then creates a digital license on their profile so the game can be played without the disc. Both outlets note that not every title is supported, and Microsoft says eligibility may change due to technical or licensing factors.
The two sources agree that the digital license is tied to the physical disc, not to the account. Tom's Hardware warns that losing, selling, or giving away the disc may limit or revoke the digital license. Engadget frames the same mechanic differently: if you sell or lend the disc, the license transfers to the new owner when they insert it, so the second-hand market continues to work. The difference is mostly emphasis—one stresses the risk to the original owner, the other the continuity of resale.
The broader context also differs slightly. Tom's Hardware contrasts the move with Sony's plan to phase out PlayStation discs by 2028, citing a petition against that decision with more than 200,000 signatures. Engadget notes that Xbox 360 and original Xbox games are not supported, and suggests the feature may future-proof libraries ahead of the next Xbox, codenamed Project Helix. Both agree that Xbox is taking a hybrid path, keeping physical media viable while adding digital convenience.