After many leaks and rumours, it is official: Xbox is launching a new scheme that lets you turn your physical game collection into a digital one.

Announced at GamesCom and coming to the Xbox Insider program on August 31, the idea is simple: insert a supported Xbox One or Xbox Series X disc into the console, and you’ll be granted an “entitlement” for that game. That means you can play your game without a disc going forward.

“This is part of our broader commitment to game preservation. As technology, devices, and distribution continue to evolve, preserving access to the games people own matters more than ever,” says Xbox.

Once the game is redeemed, not only is it playable like any other digital title, but you’ll also be able to stream it via Cloud or use it on the Xbox Play Anywhere program as well.

The scheme is undoubtedly laying the groundwork for the future, especially since it’s heavily rumoured that the next-gen Xbox will also be ditching discs entirely, much like PlayStation is doing. This program will at least ensure you can take the games with you in one form or another.

Most XBOX One and XBOX Series X disc-based games support this new feature. Players can claim a digital entitlement by inserting a supported disc into an XBOX One or XBOX Series X console and launching the game. Once the entitlement is claimed, you can experience the benefits of digital, including XBOX Play Anywhere and XBOX Cloud Gaming where supported, while your physical disc continues to work exactly as it always has.

There are a couple of things to note. First, not every game will be supported. Xbox says “We’re starting with thousands of titles,” and will add more over time. So there’s a chance a few games in your collection might not work with the scheme, but could be added,

Secondly, they have not yet directly addressed what happens if you sell the disc or give it away. The closest we get to a direct and straightforward answer is actually found on the bottom of the image higher up in this article: “One revokable digital license per game disc”.

The previous rumours and leaks, which have proven accurate so far, state that if the disc is detected in another person’s console, your digital license will be revoked and the new owner will be given an entitlement. That would mean you could never trade them, sell them, give them away or risk them somehow getting into someone else’s hands, or else lose access to the game entirely.

The wording on the bottom of the image seems to be hinting toward this, but Xbox has not said it outright.

With that said, that’s how I’m expecting the system to work as it makes the most sense.

While it isn’t an announcement that physical games will remain alive and well going into the next generation of consoles, this seems like a win for Xbox. At least you won’t be left with a collection of physical discs that are unplayable unless you keep your old hardware around as well.