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The big change for compact mode is that the sidebar collapses into icons, meaning the sidebar takes up less real estate. The new mode should work well with devices like Asus’ ROG Ele and Lenovo’s Legion Go, and Microsoft says it’s working with Asus and “other manufacturers” to “ensure that Compact mode is enabled by default on your handheld device.”
The Xbox PC app will also now only show unread notifications when you look at the notification drop-down and is getting a “Gaming Services Repair Tool” to help you troubleshoot issues. There are also some improvements for Xbox consoles, including the ability to choose a specific Japanese keyboard layout.