At the time of writing, Xbox Live has been down since mid-morning. The outage is affecting users globally, including here in Australia, with ‘Core Service’ capabilities failing.
Per the update on Xbox’s website:
Our engineers and developers are actively continuing to work to resolve the issue causing some members to have problems signing in to Xbox Live. Stay tuned, and thanks for your patience.
We will bring you updates as they become available otherwise, you can check the status here or here.
UPDATE:
Xbox has identified the particular error affecting users and insists they are on the case.
Running into error code: 0x800488FC when attempting to sign into your Xbox One console? No sweat, our teams are on it. We'll update here when we have more information to provide!
— Xbox Support (@XboxSupport) August 16, 2018
UPDATE:
All services have returned to normal.