Xbox Just Rolled Out Its Biggest System Update In Years

Published Jul 17, 2026, 11:32 AM EDT Ben Brosofsky has been writing for Screen Rant since 2022 and editing since 2024. He graduated from Vanderbilt University with a Bachelor's in Cinema & Media Arts. Writing serves as a much-needed distraction from tackling a backlog of Steam games that will never be surmounted. Sign in to your ScreenRant account Xbox and PlayStation are both in the middle of plenty of controversy right now, but Xbox has been forging full steam ahead following its news of mass lay-offs and restructuring. Today, for example, Xbox subsidiary Bethesda Game Studios offered a surprise peek at the future of the Fallout franchise, and that's not the only big update from this week. Two nights ago, Xbox rolled out a surprise system update for Xbox consoles, and it's significantly more robust than what players might have expected. With changes to everything from crafting gamertags to wishlisting games, there are a lot of new options in the update for Xbox users to brush up on. As reported by Pure Xbox, the new Xbox system update brings plenty of Xbox Insider features to the user base at large. Some of the biggest changes focus on customization, like expanding gamertags from 12 to 15 characters and offering new library display options using poster art. Color customization also now allows for specific hex colors, making it possible to dial in the perfect hue without any fiddliness. The complete list of major changes compiled by Pure Xbox is as follows: Longer gamertags (up to 15 characters) New library display options New color customization options Improved console update notes New mutual friends browser Offline console customization Add to wishlist from game cards Controller display in the Xbox Accessories app Reorganized personalization settings Prompt to play via cloud when a game needs to update Xbox service issue indicator Hard edge pixel scaling for Xbox 360 achievement art The update also contains some system bug fixes addressing issues like crashes and unexpected reloads. While the future of Xbox currently looks uncertain, especially with the continued rise of component prices heavily affecting the console market, those who have already invested in the ecosystem can certainly appreciate the slew of updates. Unlike PlayStation, Xbox has also refrained from announcing an end to physical discs for the time being, although there's no telling when that might change. New customization options don't exactly make up for the extensive job loss at Xbox, but the bread and circuses have been in the works since before these announcements anyway. It's a pretty thoughtful suite of features overall, largely focused on improving the quality-of-life in minor but appreciable ways. Hopefully, Xbox fans will be able to get some enjoyment out of tweaking their systems to their heart's content. Xbox Founded November 15, 2001 Owner Microsoft Known For Halo, Forza, Gears of War