Microsoft is aware of this issue and is working on a fix.
How to fix Xbox error 0x87dd0006
Meanwhile, you can try to fix this problem by following the troubleshooting steps listed in our guide.
Get here 11 quick Fixes to ‘Xbox sign in error 0x87dd0006’
Or you can simply wait for Microsoft to fix this problem on their end. This is actually the second time that error is preventing Xbox users from connecting to Xbox Live. Needless to say, users are very angry with Microsoft: We’ll update this news report as soon as new information is available. UPDATE: It seems that Microsoft has fixed this issue. The majority of Xbox Live users can now access their accounts.
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