Microsoft, for a while, has had a digital game gifting system in place that allowed users to purchase certain Xbox One games, Xbox Live Gold subscriptions, and Xbox Game Pass subscriptions, and then give the software as a gift to another user. Now, Microsoft has greatly expanded the program to include PC software and even more Xbox One content.
Obviously, there’s a high ceiling on available PC content, so Microsoft can’t clearly speak to the amount of giftable content. But this includes games and add-ons, and will be expanded over time. As far as Xbox One stuff goes, Microsoft has confirmed all digitally-available Xbox One games will be a part of this update.
In order to send gifts, users can access the content via the online Microsoft Store, or the Store tab on Xbox One hardware, and see a (in some cases new) “Buy as Gift” button. You can either enter the recipient’s email address, or choose from your list of friends on Xbox One. In that case, it’ll be nice and easy as the recipient will get a system message with a button for redemption.
Source: Microsoft