The US Army's purpose in contracting for this prototype weapon was to provide replacement options for the venerable M16 rifle after the XM29 program ran into problems. The Army's goal was a weapon that was cheaper, lighter, and more effective than the M16 and M4 Carbine series of weapons. The XM8 was not just one weapon, but a system which could be reconfigured with appropriate parts to be any one of several variants from a short-barreled personal defense weapon to a bipod-equipped support weapon. It also included an integrated optical sight and IR laser aiming module/illuminator.

The XM8 was based on the kinetic energy module of Alliant Techsystems's XM29 OICW project, of which the weapon mechanisms were the responsibility of H&K. Following the indefinite delay of the Objective Individual Combat Weapon program, the U.S. Army requested that the contractors design stand-alone weapons from the XM29's kinetic energy and high explosive modules. Source: Wikipedia.org