Recently, confidential information from Microsoft dated late 2023 was exposed, unveiling a strategy to incorporate crypto wallets into Xbox. This revelation has stirred excitement within the crypto community, anticipating the widespread acceptance of this initiative.

The leaked documents, inadvertently made public due to the FTC’s legal actions against Microsoft, were initially shared on the gaming platform ResetEra. They outline the Xbox development roadmap from May 2022, highlighting the inclusion of crypto wallet support.

According to the disclosed information, the upcoming Xbox generation and its ecosystem are poised to provide users with diverse financial opportunities, including an in-game economy and the integration of a crypto wallet feature. This feature is designed to enable players to securely trade their assets across various platforms.

A noteworthy detail is that the crypto wallet will be a proprietary “Xbox/Microsoft solution” rather than an industry-standard option. This suggests that Microsoft may internally develop the wallet instead of integrating with existing crypto platforms like Coinbase or MetaMask.

Given the significant potential of blockchain gaming, it comes as no surprise that industry leaders such as Microsoft are exploring avenues in this domain. Each day brings new advancements in blockchain technology, such as the utilization of Ethereum within gaming environments.

However, enthusiasts may have to exercise patience as the release of the next-generation Xbox controller is not expected until 2028.

Phil Spencer, the Head of Xbox, acknowledged the leak and hinted that plans may have evolved since the disclosed timeframe. Spencer expressed his disappointment at the premature sharing of their team’s work, emphasizing the exciting developments currently underway and in the pipeline.

The leak was attributed to the FTC’s objection to Microsoft’s $69 million acquisition of Activision Blizzard, leading to the inadvertent inclusion of leaked documents in their legal submissions.

Aside from the crypto wallet integration plans, the leaked documents also unveiled confidential discussions among Xbox executives regarding a new disc-less Xbox Series X and other upcoming projects like a gyro controller and a next-gen hybrid Xbox slated for 2028.

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

Tyler Winklevoss, the co-founder of the Gemini cryptocurrency exchange, chimed in on the conversation, highlighting the symbiotic relationship between crypto and gaming industries. He emphasized the significance of this collaboration, considering the vast scope of the gaming sector compared to traditional entertainment industries.

Microsoft’s Ongoing Engagement with Crypto and Blockchain

As Microsoft continues to advance its initiatives, its collaboration with blockchain technology and the crypto sphere remains robust. Last year in August, Microsoft announced a partnership with Aptos Labs, the developer of the layer1 blockchain network Aptos (APT), to enhance the capabilities of the web3 ecosystem.

Furthermore, in 2020, Xbox partnered with EY to address challenges within its legacy systems, particularly in securing and managing royalty processing. The implementation of a transparent blockchain network by EY facilitated interactions among publishers, creators, and asset owners within the ecosystem, significantly improving operational efficiency.

EY emphasized the importance of smart contracts in encoding the intellectual property rights of game creators, enhancing trust and transparency within the ecosystem. This streamlined approach to contracts and settlements empowered creators to focus on their creative endeavors rather than administrative tasks.

Luke Fewel, Microsoft’s General Manager of Global Finance Operations, underscored the positive impact of this project, stating, “By leveraging a blockchain-based network and optimizing royalty processing, game publishers and Xbox users benefit from a more reliable, transparent, and interconnected system from contract inception to royalty settlements.”