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These changes required the family sharing features, along with the ability to play games without their disc after installation, to be dropped.

Mattrick, who had been a leader in Xbox One development, announced his departure from Microsoft on July 1, 2013, to become CEO of Zynga.

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Privacy advocates argued that Kinect sensor data could be used for targeted advertising, and to perform unauthorized surveillance on users.

In response to these claims, Microsoft reiterated that Kinect voice recognition and motion tracking can be disabled by users, that Kinect data cannot be used for advertising per its privacy policy, and that the console would not redistribute user-generated content without permission.

The console places an increased emphasis on cloud computing, as well as social networking features, and the ability to record and share video clips or screenshots from gameplay, or live-stream directly to streaming services such as Mixer and Twitch.

Games can also be played off-console via a local area network on supported Windows 10 devices.

Reaction to this digital rights management scheme was extremely negative.

Critics felt that the changes would infringe on consumers' first-sale rights for games purchased on physical media, as games would only be licensed to users rather than sold, and the disc itself would only be used to install the game and not confer ownership of its license or permission to resell.

In August 2016, Microsoft released a refreshed Xbox One model, Xbox One S, which has a streamlined design, support for 4K video playback (including Ultra HD Blu-ray), upscaling of games from 1080p to 4K resolution, as well as HDR10 high-dynamic-range color.

It was praised for its smaller size, its on-screen visual improvements, and its lack of an external power supply, but its regressions such as the lack of a native Kinect port were noted.

Users would trade games at "participating retailers", and could also transfer a game directly to any Xbox Live friend on their list for at least 30 days, but only once.

To synchronize licenses, the console would be required to connect to the internet once every 24 hours; if the console could not connect, all games would be disabled until the console was connected again.

Its original user interface was panned for being nonintuitive, although changes made to it and other aspects of the console's software post-launch received positive reception.