Microsoft announced yesterday that it has extended digital gifting through the Microsoft Store to apps and Xbox Live avatar items, which comes in addition to digital games, Xbox Live Gold and Xbox Games Pass subscriptions. This has been one of the top-requested features from users, though some restrictions still apply.
First of all, digital gifting is still region-locked, which means that someone in the US can't send a digital gift to someone in the UK. Additionally, it’s not possible to gift original Xbox avatar items, as well as Xbox 360 and original Xbox games. Microsoft says that most apps and avatar items should be available for gifting as of yesterday, October 19, with the rest coming by Tuesday, October 23.
To send a digital gift from a Windows 10 PC, you’ll have to click the “…” button next to the Buy button on a store listing and select "Buy a gift." This will open a pop up window where you’ll be able to enter the email address of the gift recipient. On Xbox One, you’ll be able to directly select your friends’ gamertags. Once you’re done, the Microsoft Store will send gift to recipients as soon as the transaction is complete, and there’s no schedule option as of today. Microsoft is still listening to feedback about how to improve digital gifting through the Microsoft Store, and you can share your suggestions in the Feedback Hub or the Xbox Ideas site.