Xbox officially announced the disc to digital program

[Zippy6]

KLXVER said:

Its a fine feature, but the real question is will the Helix have physical discs? Otherwise this doesnt really do much without supporting OG Xbox and 360 games since the Series X is already BC with XB1 games.

I think the main reason it exists is because helix won't support discs. This is a way people will be able to digitise their existing physical collections using their old consoles before they upgrade. So they will still be able to play their disc games on the new digital only console.

This is a way to carry your physical collections with you into the all digital future.