In 2020, Microsoft announced new Xbox consoles and updated wireless controllers. Besides having an additional Share button, USB-C, and refined texture, new gamepads offer multi-device connection and Bluetooth LE support for better connectivity and reduced latency. Although previous-gen controllers work with new consoles without problems, those gamepads lack cross-device connectivity and reduced latency. Microsoft wants to fix that with a new firmware now rolling out to Xbox Insiders.
Microsoft started seeding fresh firmware for Xbox Wireless Controller with Bluetooth (a refreshed version Microsoft released in 2016 with Xbox One S), Xbox Elite Series, and Xbox Adaptive Controller. The latest updates bring Bluetooth Low Energy Support for better compatibility and multi-device support. Once you install the update, your gamepad will be able to remember two devices and switch between them with just a double-tap on the connection button. One profile is for Xbox Wireless connection (Xbox console or Xbox Wireless Adapter) and another for Bluetooth (Windows PC or a mobile device).
Another big change a new firmware brings is Dynamic Latency Input support or DLI. That technology ensures a controller delivers your inputs faster for a more responsive gaming experience on Xbox Series X|S consoles.
As of now, the update is available to Xbox Insiders in the Alpha-Skip Ahead and Alpha rings. Other insiders will receive it in a few weeks. Microsoft does not comment on when the new firmware will be available to non-insiders. It is safe to assume that it will take Microsoft a couple of weeks to test and validate the update before shipping it to the public. You can also register in the Xbox Insiders program, but it is worth mentioning that only the Omega ring is open to everyone. You need to be an active insider to receive an invitation from Microsoft to join "higher" tiers with early access to Xbox updates.
You can read more about the latest updates for Xbox Wireless Controllers in a blog post on Xbox Wire.
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