The backup Xbox game is a method to ensure that the game that you purchase will remain in good shape for a long period of duration. It's basically creating an archive copy of Xbox games that you already have so that you don't need to purchase a new one if the original disc becomes damaged or scratched.
One example of this is the case where an acquaintance of yours asks to lend you an Xbox game, but you're not certain if they return the game in the state you gave it to him. The best way to solve the issue is to make an extra game. You can also read Xbox game reviews on www.madbadnews.com/games.
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You can lend or borrow copies of backup copies to acquaintances as they are cheaper than purchasing the original game. Some might consider it a type of piracy, however, it's not. You've already purchased the original game, and you have created a backup copy to make it easier for yourself.
Additionally, it is an extremely practical idea to do because when the games begin to be damaged or require to be replaced because of overuse, you have a backup copy of the game and do not have to fret about being unable to play. Also, damaged discs create interruptions in-game as well as the burning of the Xbox games, and keeping original copies of them will solve this issue.