Microsoft is reportedly planning to make a significant portion of its Xbox 360 game library playable on PC, according to a new report from The Verge. This move would expand backward compatibility beyond current console generations and introduce classic titles to a wider audience on "Xbox PCs" and handheld gaming devices.

The initiative is said to be part of a larger roadmap for future features and is slated for rollout between 2027 and 2028. Developers would reportedly have the ability to set their own prices for PC-compatible Xbox 360 titles and choose whether to include them in Xbox Game Pass.

This follows Microsoft's recent announcement and release of original Xbox games for PC. Titles such as Blinx: The Time Sweeper, Fuzion Frenzy, Conker: Live and Reloaded, and Crimson Skies: High Road are now available for PC players.

Beyond backward compatibility, the report also details a potential "disc-to-digital" program. Under this proposed system, players could insert an Xbox game disc into a console with a disc drive to obtain a digital license for that game, linked to their account. However, if the physical disc were to change ownership, the digital license would automatically transfer to the new owner, potentially rendering the original purchaser unable to access their digital copy. The beta for this disc-to-digital program has reportedly been delayed indefinitely.

These developments emerge as the gaming industry grapples with a shift towards digital distribution. Sony, for example, has announced plans to cease production of physical game discs in January 2028, a decision that has met with significant negative feedback from consumers. Microsoft's approach, particularly the disc-to-digital program, offers a different path for players navigating the transition to digital ownership.

Xbox is also navigating internal challenges, including recent layoffs affecting several studios and price increases for its consoles in Europe. Driven partly by component shortages influenced by AI investment, Microsoft has not ruled out further price hikes in 2027.