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You will soon have more control over games installed from the Microsoft Store

Microsoft is internally testing updates to the Xbox app on PC which would allow gamers more control over the games they have installed from the Microsoft Store and open the door to modding too.
Cloud gaming enabled Xbox App

While Microsoft has massively revamped its Microsoft Store in Windows 11 - and plans to bring it to Windows 10 eventually as well - and improved its openness in terms of the new types of apps it accepts, the storefront is arguably still quite restrictive in some aspects, such as offering full control over directories where apps are installed. However, this may soon be set to change.

According to The Verge, Microsoft is internally testing the possibility of giving users full control over directories where they install games. These games may be installed from the Microsoft Store or through Xbox Game Pass for PC. This would mean that users would have the rights to move games to any folders of their choice and potentially even mod them without restrictions. This freedom will reportedly be offered through an update for the Xbox app for PC.

Under the new model, players would be able to choose custom installation folders and drives, and back up games as well. In a statement to the outlet, Jason Beaumont, partner director of experiences at Xbox, confirmed the internal testing, stating that:

With great PC games like Back 4 Blood, Age of Empires IV, Forza Horizon 5, and Halo Infinite on day one with Game Pass, we wanted to provide players with more options to customize their experience in the Xbox app. We’ll continue to share updates as we launch additional features.

It isn't clear when these new capabilities will be generally rolled out to gamers who utilize the Microsoft Store. With Halo Infinite's release on the horizon, fans of the franchise would definitely welcome the improvements. The customization options would also make it comparable to apps like Steam which already offer a great degree of freedom in terms of folder management strategies.

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