A new rumor surrounding the future of Xbox and physical media could put Microsoft in a position that seemed unlikely just a few years ago. According to John Linneman of Digital Foundry, sources had indicated that the company was exploring ways to keep players' physical games compatible with its next-generation hardware. The possibility could even include an external disc drive.
It is important to make this clear from the beginning: this is not an announcement from Microsoft. Linneman stated that the information came from a period before the recent restructuring of the Xbox division and that he does not know whether the plans are still valid. Even so, the rumor is noteworthy because it puts Microsoft in an unusual position: the company that, in 2013, attempted to accelerate the transition toward a connected and digital ecosystem could now have the opportunity to present itself as one of the main defenders of preserving physical game libraries.
John Linneman says the goal would be to preserve players' libraries
During a question-and-answer session from Digital Foundry, John Linneman stated that his sources indicated Microsoft intended to continue offering some form of physical media support. The most important detail, however, lies in the motivation attributed to the project.
“Not because they value retail disc sales, but because they want customers' games to remain playable on future hardware.”
One of the possibilities discussed would be an external disc drive, allowing the next Xbox to maintain compatibility with physical discs even if the main console does not have an integrated optical drive.
There is also another possibility: systems capable of validating a disc and associating the game with a digital license. However, none of these solutions have been officially confirmed by Microsoft.
Microsoft made this mistake back in 2013
To understand why this rumor is so significant, we need to go back to 2013. During the Xbox One presentation, Microsoft presented a vision of the future that was far more connected than the one adopted by the Xbox 360. The plan included periodic online verification and a licensing system that would fundamentally change how consumers could lend, resell, and share their games.
The proposal made sense within Microsoft's vision of an increasingly digital market. The problem was that the company attempted to accelerate this transformation at a time when a large portion of the community still considered physical media an essential part of the experience of owning a video game.
The reaction was extremely negative. The backlash forced Microsoft to reverse course before the console's launch. In June 2013, the company officially announced that it would not require a periodic internet connection for offline games and that consumers would be able to lend, resell, trade, give away, and rent physical games just as they could on the Xbox 360.
The importance of that episode goes beyond the policy change itself. The Xbox One presentation created a negative perception of the brand precisely when Sony was able to position itself as a more consumer-friendly alternative. The result cannot be attributed exclusively to the DRM policies — other factors such as price, positioning, and game strategy also played a role — but the generation ended with a huge sales gap.
Documents presented by Microsoft itself in 2022 indicated that the PlayStation 4 had sold more than twice as many units as the Xbox One. The PS4 ended its commercial life with 117.2 million units shipped, putting the Xbox One below approximately 58.6 million units.
More than a decade later, history could be turning around
The 2026 landscape, however, is very different from that of 2013. Digital distribution has grown enormously, subscription services have become an important part of the market, and millions of players already have extensive digital libraries.
It would therefore be wrong to claim that today's consumers reject digital media. On the contrary: digital distribution is already a dominant part of the video game market. Sony itself argues that consumer preferences have changed and has announced that it will stop producing physical discs for new PlayStation games starting in January 2028.
The problem lies in confusing the growing popularity of digital formats with acceptance of a future completely dependent on them. There is a difference between preferring to buy games digitally and accepting that physical media will no longer exist as an alternative. This is precisely where discussions about preservation and user ownership gain strength.
Sony may be heading toward the same problem Microsoft faced
This is where the current situation becomes particularly interesting. Sony is making a decision that would have been difficult to imagine during the PlayStation 4 generation: starting in January 2028, new PlayStation games will no longer be produced on physical discs.
The company says the decision reflects changing consumer preferences and that new releases will be distributed exclusively through digital channels. Games that have already been released or that arrive on disc before the change will not be affected.
The situation is obviously not identical to 2013. Today, the digital market is far more mature, internet infrastructure is more widespread, and a significant portion of players already prefers to purchase games this way. The technological landscape has changed completely.
But the fundamental concern remains: how much is the consumer willing to give up when it comes to keeping, transferring, reselling, or preserving their games? This is precisely why Sony's decision could end up creating an unexpected opportunity for Microsoft.
This could be the perfect opportunity for Microsoft to win back its audience
If the rumor reported by John Linneman is close to reality, Microsoft may have found an opportunity that goes far beyond simply offering a disc drive. Preserving physical media could become a message of trust for consumers.
The company could present its next Xbox as a platform capable of combining the convenience of digital distribution with the preservation of physical libraries. An external disc drive, combined with backward compatibility, would allow players to keep their existing collections while services such as Game Pass, digital purchases, and the PC ecosystem would remain pillars of the strategy.
More than simply preserving discs, Microsoft would be offering choice. And that could become an important differentiator for a brand that still carries the memories of the controversial strategy presented in 2013.
If the company actually follows this path, it could transform an old weakness into a competitive advantage: showing that the digital future of Xbox does not have to mean abandoning the players' past.
For now, however, everything remains a rumor. Microsoft has not confirmed these plans, and we will have to wait for official information to find out whether this potential change truly represents a new strategy for the next Xbox.
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