© Dreamworks Records 1998
In 1998, after the success of Either/Or and "Miss Misery", Smith signed to DreamWorks Records. Smith's first release for the label was later that year. Titled XO, it would become the top-selling album of his career. Produced by the team of Rob Schnapf and Tom Rothrock, it also contained some instrumentation from well-known Los Angeles musicians Joey Waronker and Jon Brion.
It contained a more full-sounding, baroque pop sound than any of his previous efforts, with songs featuring horn section, drum loops, chamberlains and elaborate string arrangements; however, his familiar doubled tracked vocal and acoustic guitar style was still apparent. The album went on to sell more than 200,000 copies, more than double that of his his two Kill Rock Stars releases.
Rock / Folk / Alternative
Either/Or, released on Kill Rock Stars label, came out in 1997 to favorable reviews. The album found Smith venturing even further into full instrumentation, with several songs containing bass, drums, keyboards and electric guitars, all of which were played by Smith. Most consider this album to be his last purely "indie" release.