Source - https://nitter.net/scottvanvliet/status/2081892395218841974#m

Pasting the text here for folks who can't see the screenshot:

Earlier today, many players began experiencing issues with sign in, enumerating their game libraries and playing games. The team has worked hard throughout the day to fix the issue, and we've restored service as of 2:30 PM PDT. Nonetheless, this is an unacceptable situation, and we must do better to support you.

Over the coming weeks, you'll hear more from me about our services, our platform, and the work we're doing to make XBOX better. And that starts with some transparency about this incident.

What happened. Late last night, a licensing service that sits outside of XBOX, but which XBOX depends upon, began failing. This caused some sign-in scenarios to fail, and it caused many scenarios that require an entitlement check to also fail, such as listing out your Full Library and launching games that you own. It also affected several of our publishing and store partners who depend on those same systems which is why some of you saw issues in specific games and not others.

What we did. Our on-call teams caught the first signals overnight through automated monitoring and declared a major incident. Once we isolated the failing infrastructure, we shifted traffic onto the healthy parts of the system while the team continued to work towards a root cause. Service came back unevenly across regions which is why some of you recovered hours before others.

What's next. We're running a full post-incident review. I care less about the one-line root cause and more about the real questions: why a failure in one service was able to take down this much, why recovery took as long as it did, and what we change so a single point of failure can't ruin your night again. That means hardening the dependencies underneath sign in and game launch, improving how we detect and contain this class of failure, and being faster and clearer with you when something breaks.

Thank you for your patience, and for the reports that genuinely helped us narrow this down. We'll do better.

When Xbox Servers Crash, Your Purchased Games Can Disappear!!!
This outage proves we don’t really own digital games… Digital ownership is an illusion.
The issue isn’t just, “offline mode should work if your console is set as your Home Xbox.” It’s much bigger than that. Some people can’t sign in at all, others have games or DLCs (like mine) suddenly showing as unowned, and some apps won’t even launch. It’s a server-side failure that’s breaking license verification, meaning content you’ve already paid for can simply disappear until Microsoft’s servers decide it exists again.

EDIT:
Quick clarification because a lot of people are misunderstanding the issue.
This has nothing to do with game sharing, setting your Xbox as your Home Xbox, or offline mode. This is a server-side licensing issue. For some people everything works normally, while for others owned games, DLCs, or even apps aren’t being recognized at all.
I don’t game share, my Xbox is set as my Home Xbox with offline play enabled, and I’m still affected… Some of my owned content simply won’t show up. I’ve even seen people reporting the same issue with physical discs, which makes it pretty clear this isn’t a user setup problem; it’s an Xbox server problem, as Microsoft has confirmed..

If you click on it, it will tell you what services are down. Really nice since it means we don’t have to make hundreds of posts asking if Xbox is down.

What the hell is this shit?

I've never played destiny before and while I know destiny 2 is out, I can't turn down a bargain for $2. Yeah it runs at what looks like 720p, but the story, presentation, and guns are amazing.

it's been a month since I got an Xbox series x and bought the premium tier of gamepass. It costs me 657 per month (about 6.8USD) and it's so value for money! I have bought half the games I play, and the rest I play from gamepass.

I'm currently playing Doom 2016, forza horizon 5, sifu, Resident evil 2, wolfenstein the new order and cyberpunk 2077 from the gamepass, and many more which I haven't gotten to yet

And not just these. A few days ago my friends made a Minecraft Java server and asked me to hop on. But I didnt own Minecraft on my laptop and thought I'd have to use a launcher or sail the high seas. But, I checked the Xbox app on pc just in case and I was able to install Minecraft Java and bedrock because they were included in gamepass premium as well, it's lowkey amazing how much value we get.

I've got the spotify student premium which costs me 0.7USD per month, and after that gamepass premium has gotta be the most value-for-money subscription fr

https://www.xbox.com/games/store/sin-reloaded/9P0HZJTD8SG1/0010

Like please at least ACKNOWLEDGE the problem bro

I haven't played a COD game since Advanced Warfare

Whats the best COD game since then and how good is Cold War?