Several sources are reporting that Microsoft is working on a new application that will allow users to create custom dynamic wallpapers for Windows and Xbox. The apparent leak comes courtesy of Aggiornamenti Lumia, a longtime leaker of Microsoft/Xbox/Windows related things.
— Aggiornamenti Lumia (@ALumia_Italia) May 15, 2022
The new app, which at this point is simply known as Unnamed Project, would likely take a cue from the popular Wallpaper Engine over on Steam. If and when it does become available, Unnamed Project will likely go a long way toward addressing what many users feel is a lack of customization choices for the Xbox dashboard.
Granted, there is a selection of dynamic backgrounds for Series X|S consoles, and an update released a few months back added the ability to use the Microsoft Edge Xbox app to pull images from the internet and use them as custom dashboard backgrounds. But this has apparently not been enough to satisfy those looking for a more robust set of customization features for their Xbox consoles.
Unlike the aforementioned Wallpaper Engine, this new app will likely be available for game developers only, and not the Xbox consumer. While it would be nice for users to be able to edit and customize specific wallpapers, still this new application will allow devs to bring us exciting new wallpapers and backgrounds, perhaps even including them as achievement awards and such.