The Verge has made the discovery that this app update allows you to use a standard Xbox One controller to remotely interact with a PC and wirelessly project your Windows machine onto your Xbox One.
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The Wireless Display app uses Miracast to establish a wireless connection between both gaming machines and enables the playback of different content. This not only includes the ability to share video, photos and browse the web with Microsoft Edge, but also allows you to play your favourite PC games on your Xbox One.
This is how Microsoft’s new Wireless Display app works. You can use it to control a PC via your Xbox One, and stream PC games to the console and play them with controller https://t.co/tqtqEAZVLU pic.twitter.com/nbX5KySu0m13 March 2019
There are also different settings to account for what you're doing and compensate for the latency, ensuring you get a smooth experience while playing.
At this time, it doesn't look like there's any support for keyboards and mice. You can only use an Xbox One controller, but that might change in future.
Users on Reddit are already hotly debating the possibilities of this new app - including questioning whether it'll be possible to stream PlayStation 4 games to a gaming PC, then wirelessly cast them from there to an Xbox One. Elsewhere, gamers are also contemplating whether they could use this new system to steam games like Sea of Thieves from their PC and bypass the need for Xbox Live Gold.
Meanwhile, we're left wondering if this change is part of the big plans Microsoft has been teasing for PC gamers in near future.
We'll leave the experimenting to you for now - let us know in the comments what you'd like to see happen with this app.