Microsoft may be preparing to let Xbox users publicly test its reported disc-to-digital system, codenamed Positron, through an upcoming Xbox Insider update.

The feature itself is not new, with reports earlier this month that Microsoft employees were testing technology that turns compatible physical Xbox discs into transferable digital licences.

The latest development is speculation that Positron could soon move beyond internal testing and be released to Xbox Insiders.

Xbox Insider lead Brad Rossetti recently revealed that console “flighting” – Microsoft’s term for releasing preview software builds – had been paused while the company prepared for an update this week.

Rossetti said the delayed release would be “worth the wait”, prompting Windows Central executive editor Jez Corden, who previously reported the Positron codename, to suggest the disc-to-digital system could be included.

Microsoft has not confirmed that Positron is part of the delayed build, meaning its imminent release remains speculation.

A separate Xbox Insider update has also introduced new customisation tools and “game access warnings” across the My Games & Apps interface.

The warnings are expected to alert users when they do not have the required licence or Game Pass subscription to launch a title.

While the feature may primarily be intended for Game Pass, it could also provide some of the licence-management infrastructure needed for Positron.

Under Microsoft’s reported system, players would insert a compatible Xbox One or Xbox Series X disc into a console while signed into their Microsoft account.

The game would then receive a digital entitlement linked to that specific disc, potentially allowing supported titles to be played through Xbox Cloud Gaming, PCs and handhelds.

Crucially, the digital licence would not remain permanently attached to the original account. If the disc was sold or lent to another player, the entitlement would reportedly move to the new owner and disappear from the previous account.

Original Xbox and Xbox 360 discs are not expected to qualify, while some older Xbox One releases may also be excluded.

Positron could become particularly important if Microsoft’s next-generation Project Helix console launches without a disc drive, giving existing Xbox owners a way to carry physical libraries onto future hardware while preserving the ability to trade and resell games.

The possible Positron rollout comes as Microsoft faces growing pressure over its wider Xbox reset, which has included 3,200 job cuts, the exit of five studios and protests from Bethesda employees.