The Xbox One Controller can be independently upgraded to increase functionality. The process is fairly simple, but does require a physical connection to the Xbox One. First, connect to Xbox Live. If you're planning on using a Stereo Headset Adapter with the Xbox One, plug it into the controller, and also plug the headset into the adapter.

Now. connect one end of the micro-USB cable into the Xbox One controller and the other into the Xbox One. The micro USB slot is located on top of the controller.

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At this point, the update may begin automatically. If it doesn't, press Menu on your controller and select Settings. Go to the System sub-menu. Select Controller Update.

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The update should begin, and should only take a few minutes. If you run into an error, hold down the console's Xbox button for five seconds, wait a minute, power back on, and try the update again.