In late 2023, confidential documents leaked from Microsoft unveiled a strategy to incorporate crypto wallets into Xbox, stirring excitement within the crypto community for its potential mainstream acceptance.

The inadvertent disclosure of these documents, stemming from the FTC’s legal action against Microsoft, initially surfaced on the gaming forum ResetEra. The documents outlined the Xbox development roadmap from May 2022, highlighting the inclusion of crypto wallet support in the upcoming Xbox ecosystem.

According to the leaked information, the next-generation Xbox and its associated environment would introduce diverse spending opportunities for players, including an in-game economy and a crypto wallet feature. This feature is designed to facilitate secure asset trading across various platforms.

Notably, the crypto wallet is slated to be an exclusive “Xbox/Microsoft solution,” hinting at potential in-house development by Microsoft rather than opting for integration with established crypto wallets like Coinbase or MetaMask.

Given the burgeoning prospects in blockchain gaming, it comes as no surprise that industry giants such as Microsoft are exploring advancements in this domain. The continuous innovations in blockchain technology, such as enabling players to utilize Ethereum within gaming environments, underscore the evolving landscape.

Despite the anticipation surrounding these developments, enthusiasts may need to exercise patience as the release of the next generation of Xbox controllers is not anticipated until 2028.

Acknowledging the leak, Head of Xbox Phil Spencer emphasized that plans may have evolved since the document’s creation, expressing enthusiasm for the future prospects. Spencer attributed the leak to the FTC’s objections during the $69 million Activision Blizzard acquisition, which inadvertently led to the inclusion of leaked documents in Microsoft’s submissions.

Furthermore, the leaked documents unveiled additional confidential details, including internal communications among Xbox executives regarding plans for a new disc-less Xbox Series X, a gyro controller, and a potential next-gen hybrid Xbox by 2028.

Despite the uncertainties surrounding these revelations, the crypto community responded optimistically, speculating on the integration of cryptocurrencies like Bitcoin within the Xbox ecosystem.

The involvement of Tyler Winklevoss, the cofounder of the Gemini cryptocurrency exchange, added weight to the discussion. He highlighted the symbiotic relationship between crypto and gaming industries, emphasizing the substantial economic impact of gaming compared to traditional entertainment sectors.

Xbox’s Ongoing Engagement with Crypto and Blockchain

As Microsoft intensifies its focus on innovation, its collaboration with blockchain technology and the crypto sphere remains robust. Last year, Microsoft announced a partnership with Aptos Labs, the developer of the layer1 blockchain network Aptos (APT), to enhance the capabilities of the web3 ecosystem.

Moreover, Xbox’s previous collaboration with EY in 2020 for blockchain implementation addressed challenges within its legacy systems, particularly in securing and managing royalty processing. The adoption of a transparent blockchain network streamlined interactions among publishers, creators, and asset owners, significantly improving operational efficiency and transparency.

EY’s implementation of smart contracts played a pivotal role in encoding the intellectual property rights of game creators, fostering trust and efficiency within the ecosystem. This transition to blockchain technology not only simplified contract management and settlement processes but also provided real-time access to transaction data.

Luke Fewel, Microsoft’s General Manager of Global Finance Operations, emphasized the project’s transformative impact, stating, “By leveraging a blockchain-based network for royalty processing, game publishers and Xbox users benefit from enhanced transparency and efficiency in contract operations and royalty settlements.”