Microsoft is reportedly changing the game installation experience for games on the Microsoft Store and the Xbox app for PC, allowing you to install them in any folder you want. This is a big step toward making the Microsoft Store a platform similar to Steam regarding PC games. The information comes from The Verge, citing sources familiar with Microsoft’s plans.
See also: Microsoft: Acquires Two Hat to Keep Xbox Clean

If you have ever tried to view the apps installed via the Microsoft Store, you probably know the infamous WindowsApps folder. Here all Microsoft Store apps and UWP apps are installed and it is a folder with high restrictions that requires fiddling with system settings if you want to make modifications to it. For games, this means it is also very difficult to back up your installed games to a different folder or drive, for example.
See also: “Cyberpunk 2077” PS5 & Xbox Series X/S upgrades coming in 2022
With an upcoming update to the Xbox app for PCs, which is reportedly being tested internally, Microsoft will allow users to install their games to any folder or drive they want. This is very good news for several reasons. First of all, if you have a slow internet connection, you will be able to create backups of your games so you don't have to download them again if you reset your computer or if your internal storage runs out of space. Even with a fast connection, some games can “take up” more than 100 GB, so even respectable connections need a little time to download files of this size.
The Xbox app is also said to add options for verifying or repairing a game's files, so if something has broken, it can be restored to working condition, possibly without needing to download the full game again.

Another benefit could be the modding community. Fans have been modifying games to include different assets and entirely new content for years, and Microsoft has begun to embrace this community by allowing mod support for some games in the Xbox app. However, it's still a somewhat controlled ecosystem. By installing games outside the confines of the restricted WindowsApps folder, users will be able to more easily change game files to modify the game.
See also: Xbox Series X headset update: Fixes an annoying issue
In response to The Verge, Microsoft actually confirmed that it is taking a more open approach to gaming on Xbox. Xbox's Jason Beaumon added that the new features will be announced as soon as they are available, so it is not clear when users will be able to try them on their Windows computers. It is also not clear whether this new experience will be exclusive to Windows 11 or also for Windows 10 users.
Information source: xda-developers.com
