Xbox is apparently working on a way for users to digitize the physical games they own on Xbox One and Xbox Series X, possibly with the goal of encouraging existing owners to upgrade to the next-gen Xbox. Xbox has a new system in development called Project Helix, which will be the successor to the Xbox Series X/S. Details about the system are limited at this point, but the company is already starting to build hype for the console ahead of the full reveal.
Video game fans have long feared that companies are phasing out disc drives. The Xbox Series S does not have a disc drive, and several PS5 models do not offer the ability to play physical games. PlayStation has confirmed that it will phase out discs in 2028, which could be a big change for the video game industry as a whole.

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Xbox is preparing for a fully digital future
Project Helix will reportedly not have a disc drive, preventing current Xbox Series X or Xbox One owners from using their existing physical games on the new system. According to a report from The Verge, Xbox is looking into a way for gamers to digitize the physical games they own before the new system launches. Details haven't been officially confirmed, but users would essentially get a digital title to the game by inserting it into an Xbox with a disc drive. This permission is specific to each disc and would belong to that Xbox user across systems unless the disc is sold or loaned to another user. If someone else put the game on their Xbox console, they would get digital rights.
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According to the report, the claim would work just like any other digital purchase from Xbox. This means users can play it through cloud streaming. If it's a Play Anywhere game, it would have the same availability on other devices like PC or handhelds like ROG Xbox Ally. The downside is that this would seemingly only work for games released on the Xbox Series X and some that came out on the Xbox One. This means that physical Xbox and Xbox 360 games that are currently playable on Xbox Series X will not be eligible for digital rights on Project Helix.
Xbox hasn't officially confirmed plans for a digital entitlement program, but the feature is apparently in testing. Many gamers are unhappy at the prospect of abandoning physical media, but this option could ease some of the frustrations. Xbox is struggling in the current generation, and the company will need its most passionate users to make Project Helix a success. Ensuring that current users don't lose access to games they've purchased over the past six years or more could help in this regard.
There are many unanswered questions about the next Xbox. The lack of RAM could affect the price of the Helix project, and Xbox needs to find a way to convince abandoned fans that the company's products still have value. However, without a release window or full details, fans will have to wait and see what exactly to expect from the new system.