Microsoft considered allowing users to transfer purchased digital games to others, resell or "recycle" digital copies, and exchange physical discs at retail stores for digital versions. This is reported by The Verge, citing sources familiar with Microsoft's plans.
The original concept was closely tied to Microsoft's plans to create an always-online console. It was assumed that constant online connectivity would allow for a more flexible system for exchanging games and digital licenses. However, after the announcement of the Xbox One in 2013 and widespread criticism of the always-on requirement, Microsoft abandoned this strategy.
However, some elements of the original idea still remained. In particular, Microsoft pre-equipped discs with unique identifiers that the console could read. About 15 years later, this allowed the company to implement the disc-to-digital feature – the owner of a compatible physical disc can obtain a digital game license tied to the disc and their account. If the disc is then transferred to another person, the digital license transfers to the new owner.
The current system partially returns Microsoft to a concept the company explored even before the Xbox One's release. In the future, such an approach could potentially form the basis for a more complete transfer of digital licenses between devices.
However, true "digital ownership" is still a long way off. The Verge notes that free transfer, sale, or gifting of digital licenses would require the consent of game rights holders and a unified system supported by platform holders and publishers.