Thousands of Xbox users worldwide have been unable to sign in, access their game libraries, or launch digital games after a major Xbox Live outage that began late on July 26 and continued into July 27, 2026. Microsoft has acknowledged the issue and says its engineers have identified the underlying cause, but a complete fix has yet to be rolled out. The prolonged outage has left gamers frustrated, with many encountering the 0x87e107df error while trying to access games they already own. The incident has also reignited concerns over digital game ownership, coming just days after a separate PlayStation Network disruption. What is happening with Xbox? Xbox Live suffered a widespread service outage that affected several core services, including: Account and Profile sign-in Store and Subscriptions App and Mobile services Access to digital game libraries Launching certain games Microsoft's Xbox status tracker confirmed the disruption and said the company became aware of the issue more than 12 hours before its latest update. While Microsoft says it has identified the root cause, it has not shared an estimated timeline for full service restoration. The official Xbox Support account on X posted: "We are aware that some users are encountering errors when attempting to sign in, see your game library, or launch games. Our engineers are actively working to mitigate the issue."What is the 0x87e107df error? One of the most common problems reported during the outage is the 0x87e107df error. According to Xbox, the error usually appears when Xbox Live cannot verify digital game licenses because of a service outage or a connection issue. Even users with active internet connections have reported being unable to launch purchased games. Many gamers said the error persisted despite restarting their consoles or attempting other troubleshooting steps. One user wrote on X: "Getting a 0x87e107df error have tried to go offline and also did a hard restart and that hasn’t fixed the issue. It is not loading any games even though it is connected to Xbox Live." Another user posted: "So frustrating on content I own (0x87e107df). Can play base game on my home console, but not the expansion and can't load the game at all on my secondary console. Please come up with a better license system for digital content."How to fix the Xbox 0x87e107df error Since the issue is primarily linked to the ongoing Xbox Live outage, there is no guaranteed fix until Microsoft restores affected services. However, Xbox recommends trying the following steps: Switch your console to Offline Mode in the Network settings. Restart your Xbox console. Check the official Xbox server status to see if services have been restored. Wait until Microsoft resolves the outage before attempting to launch digital games again. These steps may work for some users, but if the outage is still ongoing, the error is likely to continue until Xbox Live is fully operational.Xbox Down Update Outage-tracking website Downdetector recorded a sharp spike in user reports beginning late on July 26. Most complaints were related to game launches, while others reported problems with server connections, sign-ins, and gameplay. As per Downdetector, many Xbox users are still facing issues even today. Several such users have taken to social media to vent their ire as well. "The Xbox servers have been down for like 11 hours now and I can’t even play single player offline games," wrote one. Another wrote, "Same but some games started to work again for me, but the one game I want to play (Battlefield 6) just won't."Digital gaming debate reignited The Xbox outage has intensified discussions about the drawbacks of digital-only gaming. Because many digital titles require online license verification, some users were unable to access games they had already purchased. The disruption comes just days after PlayStation Network experienced its own outage, further raising questions about the reliability of online gaming services. It has also renewed debate over the future of digital ownership, particularly after Sony's recently announced plans to phase out physical game disc production by 2028. While Microsoft says it has identified the cause of the outage, affected users will need to wait until the company completes its fix before all Xbox services return to normal.