Xbox is introducing a new feature that grants digital entitlements for games to players who own physical discs. Through this, games purchased on physical discs will also be able to use digital features such as Xbox Play Anywhere and Xbox Cloud Gaming.

Testing for the disc-to-digital conversion feature will begin on August 31 for Xbox Insiders. Xbox stated that its goal with this feature, which brings the benefits of digital to physical discs, is to allow players to access and play games supported across the Xbox ecosystem more freely.

How it works is simple. After inserting a supported game's physical disc into an Xbox One or Xbox Series X console and launching the game, players can receive a digital entitlement for that game. Once the entitlement is claimed, players can use digital gaming features such as Xbox Play Anywhere and Xbox Cloud Gaming. The existing physical disc can also continue to be used as before.

The feature applies to most disc-based games for Xbox One and Xbox Series X. Xbox will start with thousands of titles and plans to continuously add more supported games over time. However, not all games will be supported from launch.

This feature is also part of Xbox's game preservation policy. Xbox stated, "As technology, devices, and distribution methods continue to evolve, preserving access to the games players own has become more important than ever," adding, "This feature is an important step toward a future that gives players confidence that they will be able to continue enjoying the games they purchase."

Xbox CEO Asha Sharma said, "A physical game library is not just a collection of discs, but holds years of memories and stories worth preserving," adding, "Starting next week, Xbox Insiders can receive digital entitlements for supported physical games, starting with thousands of titles and adding as many games as possible."

Testing for Xbox's disc-to-digital conversion feature will take place starting August 31 for Xbox Insiders. The release schedule for general users has not been disclosed.