Can You Gift Digital Games on Xbox that you already own?

You can't transfer ownership of digital content. The only way to gift it would be to purchase the game as a gift, so you would have to buy it again.

That's a bummer but thanks for letting me know, also what if the accounts are on the same Xbox and I just want to switch ownership of it?

Nothing is transferable between accounts.

That's a bummer but thanks for letting me know, also what if the accounts are on the same Xbox and I just want to switch ownership of it?

Please note the notice under the gift button

IT IS region locked which is by country not continent

So if you gifting someone from us and you are in uk then it won't work

And yes people do ignore that warning

One of the most common questions about gifting and region errors and why gifting has to be refunded

You can't transfer digital ownership of games. You would have to purchase the game again as a gift in order to gift it to someone else.