Xbox employees recently started testing this new feature, after references to “enable Disc2Digital” appeared in the
Xbox PC app code in May. I’m told that Microsoft’s disc-to-digital feature will work on Xbox One and Xbox Series X discs only, and not those for the Xbox 360 or original Xbox console.
Getting a digital copy of a game works simply by inserting a compatible disc and installing and playing the game. This will require a Microsoft account on an Xbox console and will grant a digital entitlement for physical games. This digital entitlement is tied to the specific disc, and it will move from account to account if you swap the physical game with a friend or log in to a different Xbox profile and try to play a disc-based game.
The digital entitlement for a physical Xbox game is similar to buying the title from Microsoft’s digital store. If the game is available on Xbox Cloud Gaming and you have a Game Pass subscription, you’ll be able to stream it. If it’s an Xbox Play Anywhere title, you’ll also be able to access it on PCs and handhelds.