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

During a global Xbox service outage, some users were unable to launch even disc-based games.

Microsoft said the cause was a bug in saved entitlement checks tied to an external service provider, not intended disc behavior.

The company says it is preparing an update to fix the issue.

The incident renewed concerns about offline play, physical game ownership, and DRM.