Based on the shared GIF of the app, it looks as though the Xbox Dynamic Backgrounds Editor might work a bit like Wallpaper Engine — an app that lets you create live wallpapers on Windows.

Wallpaper Engine is a popular Steam project that lets ... Surface, (Lumia, RIP) and Xbox products. Recently, they revealed that Microsoft had a mysterious "Unnamed Project" app in development ...

Wallpaper Engine is still a Steam Early Access application ... All the latest news, reviews, and guides for Windows and Xbox diehards. Contact me with news and offers from other Future brands ...

Looking for the best wallpapers on Wallpaper Engine? As someone who spends hours fiddling with the flashing RGB components in my computer, I'm constantly hunting for ways to make my setup look ...

These dynamic wallpapers look very similar to what Microsoft does with its Xbox dashboard ... is to install a third-party app like Wallpaper Engine. Microsoft used to support videos as wallpapers ...