Microsoft says physical discs should not have stopped working during the Xbox outage — clarifies issue with entitlement checks that failed to read licenses correctly, update on the way

Xbox consoles recently experienced a worldwide outage, during which people were unable to access even disc-based games that should have been playable offline. Service was restored within a day but the impact of this discovery could be significant as tensions run high surrounding the crumbling state of physical media. Microsoft, however, was quick to suppress the negative PR, telling The Verge that discs should have never been affected by the outage in the first place.

“Disc-based entitlement checks should not prevent players from accessing their games and this is by design,” said Microsoft tech chief Scott Van Vliet. He went on to confirm that discs go through license checks in the form of verifying entitlements. These entitlements determine what content a user is entitled to access, including when said user is offline, since they’re saved directly on the console. Van Vliet clarified that the team caught an issue that stopped the consoles “from correctly using saved entitlements during the outage.”

Xbox uses the Smart Delivery system for distributing games that automatically installs the best version of the title for your hardware. Smart Delivery has an alternative implementation called full-disc support, where developers can choose to put all executables of their game on the disc instead of relying on a license to digitally download content. That means when you insert the disc, there’s no need to even connect to the internet as the file should be ready to run out of the box. That’s precisely what failed to occur yesterday.

The outage itself affected everything from log-ins to application launches, and from online play to this strange issue of discs not running as intended. It was tied to an external service provider suddenly going down, and remaining down, for 16 hours. Xbox relied on that external provider for license and entitlement checks, so when a console failed to connect to those servers, it simply locked out players from accessing the game. It worked as fail-close mechanism instead of the fail-open it should have been, at least for discs.

If you’re even a little bit tech-savvy, this probably sounds familiar to you as DRM checks have been a part of gaming for a long time. It used to be limited to just digital releases, but disc-based media has evidently fallen to the same problems as of late. The 100GB storage capacity of Blu-ray discs is a genuine limitation, but that’s rarely the cause behind stories like this. Microsoft says it’s already working on releasing an update to address this issue, but has not provided a timeline.

Sony faced similar vitriol earlier when the community discovered mandatory 30-day online check-ins had been added to PlayStation 5 and 4 consoles, but that claim was later refuted. In 2024 , Steam came under fire for ambiguity over perpetual licenses as well, which just goes to show that even the Valve isn’t safe from this great evil. Now that PlayStation discs will cease to exist by 2028, concerns over ownership tied to physical media are growing every day.