The metaverse and extended reality (XR) environments are becoming increasingly prominent in everyday life, catalyzed by investments from major companies like Apple, Meta, and Google. These immersive environments offer new platforms for interaction, particularly through games and play, which provide unique opportunities for identity formation and expression. This panel explores the complex dynamics of digital identity in XR, focusing on how users create and navigate identities within gaming contexts. It addresses key questions about the overlap and discrepancies between real and virtual identities, the tools and technologies that facilitate identity expression, and the new modalities of emotional and psychological engagement in XR. Featuring experts from industry and academia, the discussion aims to bridge the gap between traditional social media and immersive XR experiences, providing insights into the future of digital identity. The panel will delve into how companies not traditionally involved in gaming can leverage gaming principles to enhance identity formation and communication in the metaverse. Attendees will gain a deeper understanding of identity dynamics in XR, practical insights for designing inclusive environments, and opportunities for networking and further research.