diff --git a/core/includes/entity.api.php b/core/includes/entity.api.php
index c12e4db..fbf6271 100644
--- a/core/includes/entity.api.php
+++ b/core/includes/entity.api.php
@@ -279,6 +279,29 @@ function hook_entity_view_mode_alter(&$view_mode, Drupal\Core\Entity\EntityInter
 }
 
 /**
+ * Alters the settings used for displaying an entity.
+ *
+ * @param \Drupal\entity\Plugin\Core\Entity\EntityDisplay $display
+ *   The entity_display object that will be used to display the entity
+ *   components.
+ * @param array $context
+ *   An associative array containing:
+ *   - entity_type: The entity type, e.g., 'node' or 'user'.
+ *   - bundle: The bundle, e.g., 'page' or 'article'.
+ *   - view_mode: The view mode, e.g. 'full', 'teaser'...
+ */
+function hook_entity_display_alter(Drupal\field\Plugin\Core\Entity\EntityDisplay $display, array $context) {
+  // Leave field labels out of the search index.
+  if ($context['entity_type'] == 'node' && $context['view_mode'] == 'search_index') {
+    foreach ($display->content as $name => &$properties) {
+      if (isset($properties['label'])) {
+        $properties['label'] = 'hidden';
+      }
+    }
+  }
+}
+
+/**
  * Define custom entity properties.
  *
  * @param string $entity_type
diff --git a/core/includes/entity.inc b/core/includes/entity.inc
index a866864..93b27e8 100644
--- a/core/includes/entity.inc
+++ b/core/includes/entity.inc
@@ -564,6 +564,100 @@ function entity_view_multiple(array $entities, $view_mode, $langcode = NULL) {
 }
 
 /**
+ * Returns the entity_display object configured for a bundle and view mode.
+ *
+ * The function reads the entity_display object from the current configuration,
+ * or returns a ready-to-use empty one (with no cmponent set to be displayed)
+ * if no display is currently configured yet for this bundle and view mode. We
+ * do not preemptively create new empty entity_display configuration entries
+ * for each existing entity type and bundle whenever a new view mode becomes
+ * available. Instead, the actual configuration entries are only created when
+ * an entity_display object is explicitely configured and saved. This function
+ * streamlines manipulation of entity_display objects by always returning a
+ * consistent object that reflects the current state of the configuration.
+ *
+ * Note that the entity_display is only actually used at render time if the view
+ * mode itself is configured to use dedicated display settings for the bundle
+ * (if not, the entity_display for the 'default' view mode is used intead).
+ * Thus, when fecthing the display object to use for rendering an entity, the
+ * field_get_actual_view_mode() function is used first to determine which
+ * display to load.
+ *
+ * In the much more frequent use case of assigning suggested display options
+ * for a field in a given view mode, the entity_display object for this view
+ * mode should be used directly, without using field_get_actual_view_mode(), in
+ * order to avoid inadvertently modifying the output of other view modes that
+ * might use the 'default' display too. Those options will then be effectively
+ * applied only if the view mode is configured to use them.
+ *
+ * Example usage:
+ * - Set display options for the 'body' field on article nodes in the 'default' mode:
+ * @code
+ * entity_get_display('article', 'node', 'default')
+ *   ->setContent('body', array(
+ *     'type' => 'text_summary_or_trimmed',
+ *     'settings' => array('trim_length' => '200')
+ *     'weight' => 1,
+ *   ))
+ *   ->save();
+ * @endcode
+ * - Get options used for the 'body' field when rendering an article node in 'full' view mode;
+ * @code
+ * $view_mode = field_get_actual_view_mode('node', 'article', 'full');
+ * $display = entity_get_display('node', 'article', $view_mode);
+ * $options = $display->getContent('body');
+ * @endcode
+ *
+ * @param string $entity_type
+ *   The entity type.
+ * @param string $bundle
+ *   The bundle.
+ * @param string $view_mode
+ *   The view mode.
+ *
+ * @return \Drupal\entity\Plugin\Core\Entity\EntityDisplay
+ *   The current entity_display configuration object for the view mode.
+ *
+ * @see field_get_actual_view_mode()
+ */
+function entity_get_display($entity_type, $bundle, $view_mode) {
+  // Try loading the display from configuration.
+  if ($display = entity_load('entity_display', $entity_type . '.' . $bundle . '.' . $view_mode)) {
+    return $display;
+  }
+
+  // If not found, create a fresh display object.
+  return entity_create('entity_display', array(
+    'targetEntityType' => $entity_type,
+    'bundle' => $bundle,
+    'viewMode' => $view_mode,
+  ));
+}
+
+/**
+ * Adjusts weights and visibility of components in displayed entities.
+ *
+ * This is used as a #pre_render callback.
+ */
+function _entity_view_pre_render($elements) {
+  $display = $elements['#entity_display'];
+
+  $extra_fields = field_info_extra_fields($display->targetEntityType, $display->bundle, 'display');
+  foreach (array_keys($extra_fields) as $name) {
+    if (isset($elements[$name]) && (!isset($elements[$name]['#access']) || $elements[$name]['#access'])) {
+      if ($options = $display->getComponent($name)) {
+        $elements[$name]['#weight'] = $options['weight'];
+      }
+      else {
+        $elements[$name]['#access'] = FALSE;
+      }
+    }
+  }
+
+  return $elements;
+}
+
+/**
  * Returns the entity query object for this entity type.
  *
  * @param $entity_type
diff --git a/core/lib/Drupal/Core/Entity/EntityRenderController.php b/core/lib/Drupal/Core/Entity/EntityRenderController.php
index 2cd0578..8448e48 100644
--- a/core/lib/Drupal/Core/Entity/EntityRenderController.php
+++ b/core/lib/Drupal/Core/Entity/EntityRenderController.php
@@ -30,37 +30,69 @@ public function buildContent(array $entities = array(), $view_mode = 'full', $la
     // Allow modules to change the view mode.
     $context = array('langcode' => $langcode);
 
-    $prepare = array();
-    foreach ($entities as $key => $entity) {
+    $view_modes = array();
+    $displays = array();
+
+    foreach ($entities as $entity) {
       // Remove previously built content, if exists.
       $entity->content = array();
 
       drupal_alter('entity_view_mode', $view_mode, $entity, $context);
       $entity->content['#view_mode'] = $view_mode;
-      $prepare[$view_mode][$key] = $entity;
+      $view_modes[$view_mode][$entity->id()] = $entity;
+
+      $bundle = $entity->bundle();
+
+      // Load the corresponding display settings if not stored yet.
+      if (!isset($displays[$view_mode][$bundle])) {
+        // If the view mode is not configured to use dedicated settings,
+        // rendering is done using 'default'.
+        $actual_mode = field_get_actual_view_mode($this->entityType, $bundle, $view_mode);
+
+        // Get the display object for this bundle and view mode.
+        $display = entity_get_display($this->entityType, $bundle, $actual_mode);
+        $display->originalViewMode = $view_mode;
+
+        // Let modules alter the display.
+        // Note: if config entities get a static cache at some point, the
+        // objects should be cloned before running drupal_alter().
+        $display_context = array(
+          'entity_type' => $this->entityType,
+          'bundle' => $bundle,
+          'view_mode' => $view_mode,
+        );
+        drupal_alter('entity_display', $display, $display_context);
+
+        $displays[$view_mode][$bundle] = $display;
+      }
+
+      // Assigning weights to 'extra fields' is done in a pre_render callback.
+      $entity->content['#pre_render'] = array('_entity_view_pre_render');
+      $entity->content['#entity_display'] = $displays[$view_mode][$bundle];
     }
 
     // Prepare and build field content, grouped by view mode.
-    foreach ($prepare as $view_mode => $prepare_entities) {
-      $call = array();
+    foreach ($view_modes as $view_mode => $view_mode_entities) {
+      $call_prepare = array();
       // To ensure hooks are only run once per entity, check for an
-      // entity_view_prepared flag and only process items without it.
-      foreach ($prepare_entities as $entity) {
-        if (empty($entity->entity_view_prepared)) {
+      // entity_view_prepared flag and only process relevant entities.
+      foreach ($view_mode_entities as $entity) {
+        if (empty($entity->entity_view_prepared) || $entity->entity_view_prepared != $view_mode) {
           // Add this entity to the items to be prepared.
-          $call[$entity->id()] = $entity;
+          $call_prepare[$entity->id()] = $entity;
 
-          // Mark this item as prepared.
-          $entity->entity_view_prepared = TRUE;
+          // Mark this item as prepared for this view mode.
+          $entity->entity_view_prepared = $view_mode;
         }
       }
 
-      if (!empty($call)) {
-        field_attach_prepare_view($this->entityType, $call, $view_mode, $langcode);
-        module_invoke_all('entity_prepare_view', $call, $this->entityType);
+      if (!empty($call_prepare)) {
+        field_attach_prepare_view($this->entityType, $call_prepare, $displays[$view_mode], $langcode);
+        module_invoke_all('entity_prepare_view', $call_prepare, $this->entityType);
       }
-      foreach ($entities as $entity) {
-        $entity->content += field_attach_view($this->entityType, $entity, $view_mode, $langcode);
+
+      foreach ($view_mode_entities as $entity) {
+        $entity->content += field_attach_view($this->entityType, $entity, $displays[$view_mode][$entity->bundle()], $langcode);
       }
     }
   }
diff --git a/core/modules/comment/comment.module b/core/modules/comment/comment.module
index f89d149..b73857c 100644
--- a/core/modules/comment/comment.module
+++ b/core/modules/comment/comment.module
@@ -376,15 +376,15 @@ function _comment_body_field_create($info) {
       'bundle' => 'comment_node_' . $info->type,
       'settings' => array('text_processing' => 1),
       'required' => TRUE,
-      'display' => array(
-        'default' => array(
-          'label' => 'hidden',
-          'type' => 'text_default',
-          'weight' => 0,
-        ),
-      ),
     );
     field_create_instance($instance);
+    entity_get_display('comment', 'comment_node_' . $info->type, 'default')
+      ->setComponent('comment_body', array(
+        'label' => 'hidden',
+        'type' => 'text_default',
+        'weight' => 0,
+      ))
+      ->save();
   }
 }
 
diff --git a/core/modules/entity/entity.install b/core/modules/entity/entity.install
new file mode 100644
index 0000000..5d344b2
--- /dev/null
+++ b/core/modules/entity/entity.install
@@ -0,0 +1,47 @@
+<?php
+
+/**
+ * @file
+ * Install, update and uninstall functions for the entity module.
+ */
+
+use Drupal\Component\Uuid\Uuid;
+
+/**
+ * Returns the raw configuration object for an EntityDisplay entity.
+ *
+ * The function returns the existing configuration entry if it exists, or
+ * creates a fresh structure.
+ *
+ * @param string $entity_type
+ *   The entity type.
+ * @param string $bundle
+ *   The bundle name.
+ * @param string $view_mode
+ *   The view mode.
+ *
+ * @return \Drupal\Core\Config\Config
+ *   The configuration object.
+ */
+function _entity_update_8000_get_display_config($entity_type, $bundle, $view_mode) {
+  $id = $entity_type . '.' . $bundle . '.' . $view_mode;
+  $config = config("entity.display.$id");
+  if ($config->get()) {
+    return $config;
+  }
+
+  // Initialize a fresh structure.
+  $uuid = new Uuid();
+  $properties = array(
+    'id' => $id,
+    'uuid' => $uuid->generate(),
+    'targetEntityType' => $entity_type,
+    'bundle' => $bundle,
+    'viewMode' => $view_mode,
+    'content' => array(),
+  );
+  foreach ($properties as $key => $value) {
+    $config->set($key, $value);
+  }
+  return $config;
+}
diff --git a/core/modules/entity/lib/Drupal/entity/Plugin/Core/Entity/EntityDisplay.php b/core/modules/entity/lib/Drupal/entity/Plugin/Core/Entity/EntityDisplay.php
new file mode 100644
index 0000000..370bfc1
--- /dev/null
+++ b/core/modules/entity/lib/Drupal/entity/Plugin/Core/Entity/EntityDisplay.php
@@ -0,0 +1,341 @@
+<?php
+
+/**
+ * @file
+ * Contains \Drupal\entity\Plugin\Core\Entity\EntityDisplay.
+ */
+
+namespace Drupal\entity\Plugin\Core\Entity;
+
+use Drupal\Core\Config\Entity\ConfigEntityBase;
+use Drupal\Core\Annotation\Plugin;
+use Drupal\Core\Annotation\Translation;
+
+/**
+ * Configuration encapsulator that provides all the data needed by block-driven
+ * controllers to render an entity.
+ *
+ * @Plugin(
+ *   id = "entity_display",
+ *   label = @Translation("Entity display"),
+ *   module = "field",
+ *   controller_class = "Drupal\Core\Config\Entity\ConfigStorageController",
+ *   config_prefix = "entity.display",
+ *   entity_keys = {
+ *     "id" = "id",
+ *     "uuid" = "uuid"
+ *   }
+ * )
+ */
+class EntityDisplay extends ConfigEntityBase {
+
+  /**
+   * Unique ID for the config entity.
+   *
+   * @var string
+   */
+  public $id;
+
+  /**
+   * Unique UUID for the config entity.
+   *
+   * @var string
+   */
+  public $uuid;
+
+  /**
+   * Entity type to be displayed.
+   *
+   * @var string
+   */
+  public $targetEntityType;
+
+  /**
+   * Bundle to be displayed.
+   *
+   * @var string
+   */
+  public $bundle;
+
+  /**
+   * View mode to be displayed.
+   *
+   * @var string
+   */
+  public $viewMode;
+
+  /**
+   * List of component display options, keyed by component name.
+   *
+   * @var array
+   */
+  protected $content = array();
+
+  /**
+   * The original view mode that was requested (case of view modes being
+   * configured to fall back to the 'default' display).
+   *
+   * @var string
+   */
+  public $originalViewMode;
+
+  /**
+   * The formatter objects used for this display, keyed by field name.
+   *
+   * @var array
+   */
+  protected $formatters = array();
+
+  /**
+   * Overrides \Drupal\Core\Config\Entity\ConfigEntityBase::__construct().
+   */
+  public function __construct(array $values, $entity_type) {
+    if (!isset($values['targetEntityType']) || !isset($values['bundle']) || !isset($values['viewMode'])) {
+      throw new \InvalidArgumentException(t('Missing required properties for an EntiyDisplay entity.'));
+    }
+    parent::__construct($values, $entity_type);
+
+    $this->originalViewMode = $this->viewMode;
+  }
+
+  /**
+   * Overrides \Drupal\Core\Entity\Entity::id().
+   */
+  public function id() {
+    return $this->targetEntityType . '.' . $this->bundle . '.' . $this->viewMode;
+  }
+
+  /**
+   * Overrides \Drupal\config\ConfigEntityBase::save().
+   */
+  public function save() {
+    // Build an ID if none is set.
+    if (empty($this->id)) {
+      $this->id = $this->id();
+    }
+    return parent::save();
+  }
+
+  /**
+   * Overrides \Drupal\config\ConfigEntityBase::getExportProperties();
+   */
+  public function getExportProperties() {
+    $names = array(
+      'id',
+      'uuid',
+      'targetEntityType',
+      'bundle',
+      'viewMode',
+      'content',
+    );
+    $properties = array();
+    foreach ($names as $name) {
+      $properties[$name] = $this->get($name);
+    }
+    return $properties;
+  }
+
+  /**
+   * Creates a duplicate of the EntityDisplay object on a different view mode.
+   *
+   * The new object necessarily has the same $targetEntityType and $bundle
+   * properties than the original one.
+   *
+   * @param $view_mode
+   *   The view mode for the new object.
+   *
+   * @return \Drupal\entity\Plugin\Core\Entity\EntityDisplay
+   *   The new object.
+   */
+  public function createCopy($view_mode) {
+    $display = $this->createDuplicate();
+    $display->viewMode = $display->originalViewMode = $view_mode;
+    return $display;
+  }
+
+  /**
+   * Gets the display options for all components.
+   *
+   * @return array
+   *   The array of display options, keyed by component name.
+   */
+  public function getComponents() {
+    $result = array();
+    foreach ($this->content as $name => $options) {
+      if (!isset($options['visible']) || $options['visible'] === TRUE) {
+        unset($options['visible']);
+        $result[$name] = $options;
+      }
+    }
+    return $result;
+  }
+
+  /**
+   * Gets the display options set for a component.
+   *
+   * @param string $name
+   *   The name of the component.
+   *
+   * @return array|null
+   *   The display options for the comppnent, or NULL if the component is not
+   *   displayed.
+   */
+  public function getComponent($name) {
+    // We always store 'extra fields', whether they are visible or hidden.
+    $extra_fields = field_info_extra_fields($this->targetEntityType, $this->bundle, 'display');
+    if (isset($extra_fields[$name])) {
+      // If we have explicit settings, return an array or NULL depending on
+      // visibility.
+      if (isset($this->content[$name])) {
+        if ($this->content[$name]['visible']) {
+          return array(
+            'weight' => $this->content[$name]['weight'],
+          );
+        }
+        else {
+          return NULL;
+        }
+      }
+
+      // If no explicit settings for the extra field, look at the default
+      // visibility in its definition.
+      $definition = $extra_fields[$name];
+      if (!isset($definition['visible']) || $definition['visible'] == TRUE) {
+        return array(
+          'weight' => $definition['weight']
+        );
+      }
+      else {
+        return NULL;
+      }
+    }
+
+    if (isset($this->content[$name])) {
+      return $this->content[$name];
+    }
+  }
+
+  /**
+   * Sets the display options for a component.
+   *
+   * @param string $name
+   *   The name of the component.
+   * @param array $options
+   *   The display options.
+   *
+   * @return \Drupal\entity\Plugin\Core\Entity\EntityDisplay
+   *   The EntityDisplay object.
+   */
+  public function setComponent($name, array $options = array()) {
+    // If no weight specified, make sure the field sinks at the bottom.
+    if (!isset($options['weight'])) {
+      $max = $this->getHighestWeight();
+      $options['weight'] = isset($max) ? $max + 1 : 0;
+    }
+
+    if ($instance = field_info_instance($this->targetEntityType, $name, $this->bundle)) {
+      $field = field_info_field($instance['field_name']);
+      $options = drupal_container()->get('plugin.manager.field.formatter')->prepareConfiguration($field['type'], $options);
+
+      // Clear the persisted formatter, if any.
+      unset($this->formatters[$name]);
+    }
+
+    // We always store 'extra fields', whether they are visible or hidden.
+    $extra_fields = field_info_extra_fields($this->targetEntityType, $this->bundle, 'display');
+    if (isset($extra_fields[$name])) {
+      $options['visible'] = TRUE;
+    }
+
+    $this->content[$name] = $options;
+
+    return $this;
+  }
+
+  /**
+   * Sets a component to be hidden.
+   *
+   * @param string $name
+   *   The name of the component.
+   *
+   * @return \Drupal\entity\Plugin\Core\Entity\EntityDisplay
+   *   The EntityDisplay object.
+   */
+  public function removeComponent($name) {
+    $extra_fields = field_info_extra_fields($this->targetEntityType, $this->bundle, 'display');
+    if (isset($extra_fields[$name])) {
+      // 'Extra fields' are exposed in hooks and can appear at any given time.
+      // Therefore we store extra fields that are explicitly being hidden, so
+      // that we can differenciate with those that are simply not configured
+      // yet.
+      $this->content[$name] = array(
+        'visible' => FALSE,
+      );
+    }
+    else {
+      unset($this->content[$name]);
+      unset($this->formatters[$name]);
+    }
+
+    return $this;
+  }
+
+  /**
+   * Returns the highest weight of the components in the display.
+   *
+   * @return int|null
+   *   The highest weight of the components in the display, or NULL if the
+   *   display is empty.
+   */
+  public function getHighestWeight() {
+    $weights = array();
+
+    // Collect weights for the components in the display.
+    foreach ($this->content as $options) {
+      if (isset($options['weight'])) {
+        $weights[] = $options['weight'];
+      }
+    }
+
+    // Let other modules feedback about their own additions.
+    $weights = array_merge($weights, module_invoke_all('field_info_max_weight', $this->targetEntityType, $this->bundle, $this->viewMode));
+
+    return $weights ? max($weights) : NULL;
+  }
+
+  /**
+   * Returns the Formatter plugin for a field.
+   *
+   * @param string $field_name
+   *   The field name.
+   *
+   * @return \Drupal\field\Plugin\Type\Formatter\FormatterInterface
+   *   If the field is not hidden, the Formatter plugin to use for rendering
+   *   it.
+   */
+  public function getFormatter($field_name) {
+    if (isset($this->formatters[$field_name])) {
+      return $this->formatters[$field_name];
+    }
+
+    // Instanciate the formatter object from the stored display properties.
+    if ($configuration = $this->getComponent($field_name)) {
+      $instance = field_info_instance($this->targetEntityType, $field_name, $this->bundle);
+      $formatter = drupal_container()->get('plugin.manager.field.formatter')->getInstance(array(
+        'instance' => $instance,
+        'view_mode' => $this->originalViewMode,
+        // No need to prepare, defaults have been merged in setComponent().
+        'prepare' => FALSE,
+        'configuration' => $configuration
+      ));
+    }
+    else {
+      $formatter = NULL;
+    }
+
+    // Persist the formatter object.
+    $this->formatters[$field_name] = $formatter;
+    return $formatter;
+  }
+
+}
diff --git a/core/modules/entity/lib/Drupal/entity/Tests/EntityDisplayTest.php b/core/modules/entity/lib/Drupal/entity/Tests/EntityDisplayTest.php
new file mode 100644
index 0000000..46c4adf
--- /dev/null
+++ b/core/modules/entity/lib/Drupal/entity/Tests/EntityDisplayTest.php
@@ -0,0 +1,201 @@
+<?php
+
+/**
+ * @file
+ * Contains \Drupal\entity\Tests\EntityDisplayTest.
+ */
+
+namespace Drupal\entity\Tests;
+
+use Drupal\simpletest\DrupalUnitTestBase;
+
+/**
+ * Tests the EntityDisplay configuration entities.
+ */
+class EntityDisplayTest extends DrupalUnitTestBase {
+
+  public static $modules = array('entity_test');
+
+  public static function getInfo() {
+    return array(
+      'name' => 'Entity display configuration entities',
+      'description' => 'Tests the entity display configuration entities.',
+      'group' => 'Entity API',
+    );
+  }
+
+  protected function setUp() {
+    parent::setUp();
+
+    $this->enableModules(array('system', 'field'));
+  }
+
+  /**
+   * Tests basic CRUD operations on EntityDisplay objects.
+   */
+  public function testEntityDisplayCRUD() {
+    $display = entity_create('entity_display', array(
+      'targetEntityType' => 'entity_test',
+      'bundle' => 'entity_test',
+      'viewMode' => 'default',
+    ));
+
+    $expected = array();
+
+    // Check that providing no 'weight' results in the highest current weight
+    // being assigned.
+    $expected['component_1'] = array('weight' => 0);
+    $expected['component_2'] = array('weight' => 1);
+    $display->setComponent('component_1');
+    $display->setComponent('component_2');
+    $this->assertEqual($display->getComponent('component_1'), $expected['component_1']);
+    $this->assertEqual($display->getComponent('component_2'), $expected['component_2']);
+
+    // Check that arbitrary options are correctly stored.
+    $expected['component_3'] = array('weight' => 10, 'foo' => 'bar');
+    $display->setComponent('component_3', $expected['component_3']);
+    $this->assertEqual($display->getComponent('component_3'), $expected['component_3']);
+
+    // Check that the display can be properly saved and read back.
+    $display->save();
+    $display = entity_load('entity_display', $display->id());
+    foreach (array('component_1', 'component_2', 'component_3') as $name) {
+      $this->assertEqual($display->getComponent($name), $expected[$name]);
+    }
+
+    // Check that getComponents() returns options for all components.
+    $this->assertEqual($display->getComponents(), $expected);
+
+    // Check that a component can be removed.
+    $display->removeComponent('component_3');
+    $this->assertNULL($display->getComponent('component_3'));
+
+    // Check that the removal is correctly persisted.
+    $display->save();
+    $display = entity_load('entity_display', $display->id());
+    $this->assertNULL($display->getComponent('component_3'));
+
+    // Check that CreateCopy() creates a new component that can be correclty
+    // saved.
+    $new_display = $display->createCopy('other_view_mode');
+    $new_display->save();
+    $new_display = entity_load('entity_display', $new_display->id());
+    $this->assertEqual($new_display->targetEntityType, $display->targetEntityType);
+    $this->assertEqual($new_display->bundle, $display->bundle);
+    $this->assertEqual($new_display->viewMode, 'other_view_mode');
+    $this->assertEqual($new_display->getComponents(), $display->getComponents());
+  }
+
+  /**
+   * Tests entity_get_display().
+   */
+  public function testEntityGetDisplay() {
+    // Check that entity_get_display() returns a fresh object when no
+    // configuration entry exists.
+    $display = entity_get_display('entity_test', 'entity_test', 'default');
+    $this->assertTrue($display->isNew());
+
+    // Add some components and save the display.
+    $display->setComponent('component_1', array('weight' => 10))
+      ->save();
+
+    // Check that entity_get_display() returns the correct object.
+    $display = entity_get_display('entity_test', 'entity_test', 'default');
+    $this->assertFalse($display->isNew());
+    $this->assertEqual($display->id, 'entity_test.entity_test.default');
+    $this->assertEqual($display->getComponent('component_1'), array('weight' => 10));
+  }
+
+  /**
+   * Tests the behavior of a field conponent within an EntityDisplay object.
+   */
+  public function testExtraFieldComponent() {
+    $display = entity_create('entity_display', array(
+      'targetEntityType' => 'entity_test',
+      'bundle' => 'entity_test',
+      'viewMode' => 'default',
+    ));
+
+    // Check that the default visibility taken into account for extra fields
+    // unknown in the display.
+    $this->assertEqual($display->getComponent('display_extra_field'), array('weight' => 5));
+    $this->assertNull($display->getComponent('display_extra_field_hidden'));
+
+    // Check that setting explicit options overrides the defaults.
+    $display->removeComponent('display_extra_field');
+    $display->setComponent('display_extra_field_hidden', array('weight' => 10));
+    $this->assertNull($display->getComponent('display_extra_field'));
+    $this->assertEqual($display->getComponent('display_extra_field_hidden'), array('weight' => 10));
+  }
+
+  /**
+   * Tests the behavior of a field conponent within an EntityDisplay object.
+   */
+  public function testFieldComponent() {
+    $this->enableModules(array('field_sql_storage', 'field_test'));
+
+    $display = entity_create('entity_display', array(
+      'targetEntityType' => 'entity_test',
+      'bundle' => 'entity_test',
+      'viewMode' => 'default',
+    ));
+
+    // Create a field and an instance.
+    $field = array(
+      'field_name' => 'test_field',
+      'type' => 'test_field'
+    );
+    field_create_field($field);
+    $instance = array(
+      'field_name' => $field['field_name'],
+      'entity_type' => 'entity_test',
+      'bundle' => 'entity_test',
+    );
+    field_create_instance($instance);
+
+    // Check that providing no options results in default values being used.
+    $display->setComponent($field['field_name']);
+    $field_type_info = field_info_field_types($field['type']);
+    $default_formatter = $field_type_info['default_formatter'];
+    $default_settings = field_info_formatter_settings($default_formatter);
+    $expected = array(
+      'weight' => 0,
+      'label' => 'above',
+      'type' => $default_formatter,
+      'settings' => $default_settings,
+    );
+    $this->assertEqual($display->getComponent($field['field_name']), $expected);
+
+    // Check that the getFormatter() method returns the correct formatter plugin.
+    $formatter = $display->getFormatter($field['field_name']);
+    $this->assertEqual($formatter->getPluginId(), $default_formatter);
+    $this->assertEqual($formatter->getSettings(), $default_settings);
+
+    // Check that the formatter is statically persisted, by assigning an
+    // arbitrary property and reading it back.
+    $random_value = $this->randomString();
+    $formatter->randomValue = $random_value;
+    $formatter = $display->getFormatter($field['field_name']);
+    $this->assertEqual($formatter->randomValue, $random_value );
+
+    // Check that changing the definition creates a new formatter.
+    $display->setComponent($field['field_name'], array(
+      'type' => 'field_test_multiple',
+    ));
+    $formatter = $display->getFormatter($field['field_name']);
+    $this->assertEqual($formatter->getPluginId(), 'field_test_multiple');
+    $this->assertFalse(isset($formatter->randomValue));
+
+    // Check that specifying an unknown formatter (e.g. case of a disabled
+    // module) gets stored as is in the display, but results in the default
+    // formatter being used.
+    $display->setComponent($field['field_name'], array(
+      'type' => 'unknown_formatter',
+    ));
+    $options = $display->getComponent($field['field_name']);
+    $this->assertEqual($options['type'], 'unknown_formatter');
+    $formatter = $display->getFormatter($field['field_name']);
+    $this->assertEqual($formatter->getPluginId(), $default_formatter);
+  }
+
+}
diff --git a/core/modules/field/field.api.php b/core/modules/field/field.api.php
index 22a9ed7..f9ff7af 100644
--- a/core/modules/field/field.api.php
+++ b/core/modules/field/field.api.php
@@ -1104,12 +1104,13 @@ function hook_field_attach_purge($entity_type, $entity, $field, $instance) {
  *   - entity_type: The type of $entity; for example, 'node' or 'user'.
  *   - entity: The entity with fields to render.
  *   - view_mode: View mode; for example, 'full' or 'teaser'.
- *   - display: Either a view mode string or an array of display settings. If
- *     this hook is being invoked from field_attach_view(), the 'display'
- *     element is set to the view mode string. If this hook is being invoked
- *     from field_view_field(), this element is set to the $display argument and
- *     the view_mode element is set to '_custom'. See field_view_field() for
- *     more information on what its $display argument contains.
+ *   - display_options: Either a view mode string or an array of display
+ *     options. If this hook is being invoked from field_attach_view(), the
+ *     'display_options' element is set to the view mode string. If this hook
+ *     is being invoked from field_view_field(), this element is set to the
+ *     $display_options argument and the view_mode element is set to '_custom'.
+ *     See field_view_field() for more information on what its $display_options
+ *     argument contains.
  *   - language: The language code used for rendering.
  */
 function hook_field_attach_view_alter(&$output, $context) {
@@ -1942,94 +1943,6 @@ function hook_field_info_max_weight($entity_type, $bundle, $context) {
 }
 
 /**
- * Alters the display settings of a field before it is displayed.
- *
- * Note that instead of hook_field_display_alter(), which is called for all
- * fields on all entity types, hook_field_display_ENTITY_TYPE_alter() may be
- * used to alter display settings for fields on a specific entity type only.
- *
- * This hook is called once per field per displayed entity. If the result of the
- * hook involves reading from the database, it is highly recommended to
- * statically cache the information.
- *
- * @param array $display_properties
- *   The display settings that will be used to display the field values, as
- *   found in the 'display' key of $instance definitions.
- * @param array $context
- *   An associative array containing:
- *   - entity_type: The entity type, e.g., 'node' or 'user'.
- *   - bundle: The bundle, e.g., 'page' or 'article'.
- *   - field: The field being rendered.
- *   - instance: The instance being rendered.
- *   - view_mode: The view mode, e.g. 'full', 'teaser'...
- *
- * @see hook_field_display_ENTITY_TYPE_alter()
- */
-function hook_field_display_alter(array &$display_properties, array $context) {
-  // Leave field labels out of the search index.
-  // Note: The check against $context['entity_type'] == 'node' could be avoided
-  // by using hook_field_display_node_alter() instead of
-  // hook_field_display_alter(), resulting in less function calls when
-  // rendering non-node entities.
-  if ($context['entity_type'] == 'node' && $context['view_mode'] == 'search_index') {
-    $display_properties['label'] = 'hidden';
-  }
-}
-
-/**
- * Alters the display settings of a field before it is displayed.
- *
- * Modules can implement hook_field_display_ENTITY_TYPE_alter() to alter display
- * settings for fields on a specific entity type, rather than implementing
- * hook_field_display_alter().
- *
- * This hook is called once per field per displayed entity. If the result of the
- * hook involves reading from the database, it is highly recommended to
- * statically cache the information.
- *
- * @param array $display_properties
- *   The display settings that will be used to display the field values, as
- *   found in the 'display' key of $instance definitions.
- * @param array $context
- *   An associative array containing:
- *   - entity_type: The entity type, e.g., 'node' or 'user'.
- *   - bundle: The bundle, e.g., 'page' or 'article'.
- *   - field: The field being rendered.
- *   - instance: The instance being rendered.
- *   - view_mode: The view mode, e.g. 'full', 'teaser'...
- *
- * @see hook_field_display_alter()
- */
-function hook_field_display_ENTITY_TYPE_alter(array &$display_properties, array $context) {
-  // Leave field labels out of the search index.
-  if ($context['view_mode'] == 'search_index') {
-    $display_properties['label'] = 'hidden';
-  }
-}
-
-/**
- * Alters the display settings of pseudo-fields before an entity is displayed.
- *
- * This hook is called once per displayed entity. If the result of the hook
- * involves reading from the database, it is highly recommended to statically
- * cache the information.
- *
- * @param $displays
- *   An array of display settings for the pseudo-fields in the entity, keyed by
- *   pseudo-field names.
- * @param $context
- *   An associative array containing:
- *   - entity_type: The entity type; e.g., 'node' or 'user'.
- *   - bundle: The bundle name.
- *   - view_mode: The view mode, e.g. 'full', 'teaser'...
- */
-function hook_field_extra_fields_display_alter(&$displays, $context) {
-  if ($context['entity_type'] == 'taxonomy_term' && $context['view_mode'] == 'full') {
-    $displays['description']['visible'] = FALSE;
-  }
-}
-
-/**
  * Alters the widget properties of a field instance on a given entity type
  * before it gets displayed.
  *
diff --git a/core/modules/field/field.attach.inc b/core/modules/field/field.attach.inc
index 29ebd3b..1a006ec 100644
--- a/core/modules/field/field.attach.inc
+++ b/core/modules/field/field.attach.inc
@@ -7,6 +7,7 @@
 
 use Drupal\field\FieldValidationException;
 use Drupal\Core\Entity\EntityInterface;
+use Drupal\entity\Plugin\Core\Entity\EntityDisplay;
 
 /**
  * @defgroup field_storage Field Storage API
@@ -715,26 +716,6 @@ function _field_invoke_widget_target() {
 }
 
 /**
- * Defines a 'target function' for field_invoke_method().
- *
- * Used to invoke methods on an instance's formatter.
- *
- * @param mixed $display
- *   Can be either:
- *   - The name of a view mode.
- *   - An array of display properties, as found in
- *     $instance['display'][$view_mode].
- *
- * @return callable $target_function
- *   A 'target function' for field_invoke_method().
- */
-function _field_invoke_formatter_target($display) {
-  return function ($instance) use ($display) {
-    return $instance->getFormatter($display);
-  };
-}
-
-/**
  * Adds form elements for all fields for an entity to a form structure.
  *
  * The form elements for the entity's fields are added by reference as direct
@@ -1361,10 +1342,10 @@ function field_attach_delete_revision($entity_type, $entity) {
  *
  * @param $entity_type
  *   The type of entities in $entities; e.g. 'node' or 'user'.
- * @param $entities
+ * @param array $entities
  *   An array of entities, keyed by entity ID.
- * @param $view_mode
- *   View mode, e.g. 'full', 'teaser'...
+ * @param array $displays
+ *   An array of entity display objects, keyed by bundle name.
  * @param $langcode
  *   (Optional) The language the field values are to be shown in. If no language
  *   is provided the current language is used.
@@ -1372,7 +1353,7 @@ function field_attach_delete_revision($entity_type, $entity) {
  *   An associative array of additional options. See field_invoke_method() for
  *   details.
  */
-function field_attach_prepare_view($entity_type, $entities, $view_mode, $langcode = NULL, array $options = array()) {
+function field_attach_prepare_view($entity_type, array $entities, array $displays, $langcode = NULL, array $options = array()) {
   $options['langcode'] = array();
 
   // To ensure hooks are only run once per entity, only process items without
@@ -1396,8 +1377,15 @@ function field_attach_prepare_view($entity_type, $entities, $view_mode, $langcod
   $null = NULL;
   // First let the field types do their preparation.
   _field_invoke_multiple('prepare_view', $entity_type, $prepare, $null, $null, $options);
-  // Then let the formatters do their own specific massaging.
-  field_invoke_method_multiple('prepareView', _field_invoke_formatter_target($view_mode), $prepare, $view_mode, $null, $options);
+  // Then let the formatters do their own specific massaging. For each
+  // instance, call the prepareView() method on the formatter object handed by
+  // the entity display.
+  $target_function = function ($instance) use ($displays) {
+    if (isset($displays[$instance['bundle']])) {
+      return $displays[$instance['bundle']]->getFormatter($instance['field_name']);
+    }
+  };
+  field_invoke_method_multiple('prepareView', $target_function, $prepare, $null, $null, $options);
 }
 
 /**
@@ -1437,37 +1425,38 @@ function field_attach_prepare_view($entity_type, $entities, $view_mode, $langcod
  *   The type of $entity; e.g. 'node' or 'user'.
  * @param Drupal\Core\Entity\EntityInterface $entity
  *   The entity with fields to render.
- * @param $view_mode
- *   View mode, e.g. 'full', 'teaser'...
+ * @param \Drupal\entity\Plugin\Core\Entity\EntityDisplay $display
+ *   The entity display object.
  * @param $langcode
  *   The language the field values are to be shown in. If no language is
  *   provided the current language is used.
  * @param array $options
  *   An associative array of additional options. See field_invoke_method() for
  *   details.
- * @return
+
+ * @return array
  *   A renderable array for the field values.
  */
-function field_attach_view($entity_type, EntityInterface $entity, $view_mode, $langcode = NULL, array $options = array()) {
+function field_attach_view($entity_type, EntityInterface $entity, EntityDisplay $display, $langcode = NULL, array $options = array()) {
   // Determine the actual language code to display for each field, given the
   // language codes available in the field data.
   $options['langcode'] = field_language($entity_type, $entity, NULL, $langcode);
 
-  // Invoke field_default_view().
+  // For each instance, call the view() method on the formatter object handed
+  // by the entity display.
+  $target_function = function ($instance) use ($display) {
+    return $display->getFormatter($instance['field_name']);
+  };
   $null = NULL;
-  $output = field_invoke_method('view', _field_invoke_formatter_target($view_mode), $entity, $view_mode, $null, $options);
-
-  // Add custom weight handling.
-  $output['#pre_render'][] = '_field_extra_fields_pre_render';
-  $output['#entity_type'] = $entity_type;
-  $output['#bundle'] = $entity->bundle();
+  $output = field_invoke_method('view', $target_function, $entity, $null, $null, $options);
 
   // Let other modules alter the renderable array.
+  $view_mode = $display->originalViewMode;
   $context = array(
     'entity_type' => $entity_type,
     'entity' => $entity,
     'view_mode' => $view_mode,
-    'display' => $view_mode,
+    'display_options' => $view_mode,
     'langcode' => $langcode,
   );
   drupal_alter('field_attach_view', $output, $context);
diff --git a/core/modules/field/field.crud.inc b/core/modules/field/field.crud.inc
index ac66c77..a62ad2e 100644
--- a/core/modules/field/field.crud.inc
+++ b/core/modules/field/field.crud.inc
@@ -588,7 +588,6 @@ function _field_write_instance(&$instance, $update = FALSE) {
   // Set defaults.
   $instance += array(
     'settings' => array(),
-    'display' => array(),
     'widget' => array(),
     'required' => FALSE,
     'label' => $instance['field_name'],
@@ -615,30 +614,6 @@ function _field_write_instance(&$instance, $update = FALSE) {
   $instance['widget']['module'] = $widget_type['module'];
   $instance['widget']['settings'] += field_info_widget_settings($instance['widget']['type']);
 
-  // Make sure there are at least display settings for the 'default' view mode,
-  // and fill in defaults for each view mode specified in the definition.
-  $instance['display'] += array(
-    'default' => array(),
-  );
-  foreach ($instance['display'] as $view_mode => $display) {
-    $display += array(
-      'label' => 'above',
-      'type' => isset($field_type['default_formatter']) ? $field_type['default_formatter'] : 'hidden',
-      'settings' => array(),
-    );
-    if ($display['type'] != 'hidden') {
-      $formatter_type = field_info_formatter_types($display['type']);
-      $display['module'] = $formatter_type['module'];
-      $display['settings'] += field_info_formatter_settings($display['type']);
-    }
-    // If no weight specified, make sure the field sinks at the bottom.
-    if (!isset($display['weight'])) {
-      $max_weight = field_info_max_weight($instance['entity_type'], $instance['bundle'], $view_mode);
-      $display['weight'] = isset($max_weight) ? $max_weight + 1 : 0;
-    }
-    $instance['display'][$view_mode] = $display;
-  }
-
   // The serialized 'data' column contains everything from $instance that does
   // not have its own column and is not automatically populated when the
   // instance is read.
diff --git a/core/modules/field/field.info.inc b/core/modules/field/field.info.inc
index 5fab889..688d611 100644
--- a/core/modules/field/field.info.inc
+++ b/core/modules/field/field.info.inc
@@ -522,7 +522,7 @@ function field_info_extra_fields($entity_type, $bundle, $context) {
 }
 
 /**
- * Returns the maximum weight of all the components in an entity.
+ * Returns the maximum weight of all the components in a form entity.
  *
  * This includes fields, 'extra_fields', and other components added by
  * third-party modules (e.g. field_group).
@@ -531,33 +531,25 @@ function field_info_extra_fields($entity_type, $bundle, $context) {
  *   The type of entity; e.g. 'node' or 'user'.
  * @param $bundle
  *   The bundle name.
- * @param $context
- *   The context for which the maximum weight is requested. Either 'form', or
- *   the name of a view mode.
  *
  * @return
  *   The maximum weight of the entity's components, or NULL if no components
  *   were found.
  */
-function field_info_max_weight($entity_type, $bundle, $context) {
+function field_info_max_weight($entity_type, $bundle) {
   $weights = array();
 
   // Collect weights for fields.
   foreach (field_info_instances($entity_type, $bundle) as $instance) {
-    if ($context == 'form') {
-      $weights[] = $instance['widget']['weight'];
-    }
-    elseif (isset($instance['display'][$context]['weight'])) {
-      $weights[] = $instance['display'][$context]['weight'];
-    }
+    $weights[] = $instance['widget']['weight'];
   }
   // Collect weights for extra fields.
-  foreach (field_info_extra_fields($entity_type, $bundle, $context) as $extra) {
+  foreach (field_info_extra_fields($entity_type, $bundle, 'form') as $extra) {
     $weights[] = $extra['weight'];
   }
 
   // Let other modules feedback about their own additions.
-  $weights = array_merge($weights, module_invoke_all('field_info_max_weight', $entity_type, $bundle, $context));
+  $weights = array_merge($weights, module_invoke_all('field_info_max_weight', $entity_type, $bundle, 'form'));
   $max_weight = $weights ? max($weights) : NULL;
 
   return $max_weight;
diff --git a/core/modules/field/field.install b/core/modules/field/field.install
index b88faa8..a8ae8ad 100644
--- a/core/modules/field/field.install
+++ b/core/modules/field/field.install
@@ -357,15 +357,6 @@ function _update_7000_field_create_instance($field, &$instance) {
     'deleted' => 0,
   );
 
-  // Merge in display defaults.
-  if (isset($instance['display'])) {
-    foreach ($instance['display'] as &$display) {
-      $display += array(
-        'weight' => 0,
-      );
-    }
-  }
-
   // The serialized 'data' column contains everything from $instance that does
   // not have its own column and is not automatically populated when the
   // instance is read.
@@ -403,6 +394,95 @@ function field_update_8001() {
 }
 
 /**
+ * Migrate all instance display settings to configuration.
+ *
+ * @ingroup config_upgrade
+ */
+function field_update_8002() {
+  global $conf;
+
+  $displays = array();
+  module_load_install('entity');
+
+  $query = db_select('field_config_instance', 'fc')->fields('fc');
+  foreach ($query->execute() as $record) {
+    // Unserialize the data array and start investigating the display key
+    // which holds the configuration of this instance for all view modes.
+    $data = unserialize($record->data);
+
+    // Skip field instances that were created directly with the new API earlier
+    // in the upgrade path.
+    if (!isset($data['display'])) {
+      continue;
+    }
+
+    foreach ($data['display'] as $view_mode => $display_options) {
+      // Determine name and create initial entry in the $displays array if it
+      // does not exist yet.
+      $display_id = $record->entity_type . '.' . $record->bundle . '.' . $view_mode;
+      if (!isset($displays[$display_id])) {
+        $displays[$display_id] = _entity_update_8000_get_display_config($record->entity_type, $record->bundle, $view_mode);
+      }
+
+      // The display object does not store hidden fields.
+      if ($display_options['type'] != 'hidden') {
+        // We do not need the 'module' key anymore.
+        unset($display_options['module']);
+        $displays[$display_id]->set("content.$record->field_name", $display_options);
+      }
+    }
+
+    // Remove the 'display' key and save the record back into the table.
+    unset($data['display']);
+    db_update('field_config_instance')
+      ->condition('id', $record->id)
+      ->fields(array(
+        'data' => serialize($data),
+      ))
+      ->execute();
+  }
+
+  // Migration of 'extra_fields' display settings. Avoid calling
+  // entity_get_info() by iterating directly on the global $conf array.
+  foreach ($conf as $variable_name => $variable_value) {
+    if (preg_match('/field_bundle_settings_(.*)__(.*)/', $variable_name, $matches)) {
+      $entity_type = $matches[1];
+      $bundle = $matches[2];
+      if (isset($variable_value['extra_fields']['display'])) {
+        foreach ($variable_value['extra_fields']['display'] as $field_name => $field_settings) {
+          foreach ($field_settings as $view_mode => $display_options) {
+            // Determine name and create initial entry in the $displays array
+            // if it does not exist yet.
+            $display_id =  $entity_type . '.' . $bundle . '.' . $view_mode;
+            if (!isset($displays[$display_id])) {
+              $displays[$display_id] = _entity_update_8000_get_display_config($entity_type, $bundle, $view_mode);
+            }
+
+            // Set options in the display.
+            $new_options = array('visible' => $display_options['visible']);
+            // The display object only stores the weght for 'visible' extra fields.
+            if ($display_options['visible']) {
+              $new_options['weight'] = $display_options['weight'];
+            }
+            $displays[$display_id]->set("content.$field_name", $new_options);
+
+            // Remove the old entry.
+            unset($variable_value['extra_fields']['display']);
+            variable_set($variable_name, $variable_value);
+          }
+        }
+      }
+    }
+  }
+
+  // Save the displays to configuration.
+  foreach ($displays as $config) {
+    $config->save();
+  }
+}
+
+/**
  * @} End of "addtogroup updates-7.x-to-8.x".
  * The next series of updates should start at 9000.
  */
+
diff --git a/core/modules/field/field.module b/core/modules/field/field.module
index 686e3f5..bbf984c 100644
--- a/core/modules/field/field.module
+++ b/core/modules/field/field.module
@@ -682,7 +682,6 @@ function field_bundle_settings($entity_type, $bundle, $settings = NULL) {
     );
     $settings['extra_fields'] += array(
       'form' => array(),
-      'display' => array(),
     );
 
     return $settings;
@@ -725,7 +724,33 @@ function field_view_mode_settings($entity_type, $bundle) {
 }
 
 /**
- * Returns the display settings to use for pseudo-fields in a given view mode.
+ * Returns the actual view mode to use for a bundle.
+ *
+ * Depending on the current configuration of the bundle for this view mode, the
+ * function returns either:
+ * - the value of the incoming $view_mode parameter,
+ * - or 'default'.
+ *
+ * @param string $entity_type
+ *   The type of $entity; e.g., 'node' or 'user'.
+ * @param string $bundle
+ *   The bundle name.
+ * @param string $view_mode
+ *   The view mode.
+ *
+ * @return string
+ *   The actual view mode to use for this entity type and bundle.
+ *
+ * @todo Move this function over to the entity API when the underlying
+ * variable is moved to configuration files.
+ */
+function field_get_actual_view_mode($entity_type, $bundle, $view_mode) {
+  $view_mode_settings = field_view_mode_settings($entity_type, $bundle);
+  return (!empty($view_mode_settings[$view_mode]['custom_settings']) ? $view_mode : 'default');
+}
+
+/**
+ * Returns the display options to use for pseudo-fields in a given view mode.
  *
  * @param $entity_type
  *   The type of $entity; e.g., 'node' or 'user'.
@@ -735,29 +760,20 @@ function field_view_mode_settings($entity_type, $bundle) {
  *   The view mode.
  *
  * @return
- *   The display settings to be used when viewing the bundle's pseudo-fields.
+ *   The display options to be used when viewing the bundle's pseudo-fields.
  */
 function field_extra_fields_get_display($entity_type, $bundle, $view_mode) {
-  // Check whether the view mode uses custom display settings or the 'default'
-  // mode.
-  $view_mode_settings = field_view_mode_settings($entity_type, $bundle);
-  $actual_mode = (!empty($view_mode_settings[$view_mode]['custom_settings'])) ? $view_mode : 'default';
+
+  $actual_mode = field_get_actual_view_mode($entity_type, $bundle, $view_mode);
+  $entity_display = entity_get_display($entity_type, $bundle, $actual_mode);
   $extra_fields = field_info_extra_fields($entity_type, $bundle, 'display');
 
-  $displays = array();
+  $options = array();
   foreach ($extra_fields as $name => $value) {
-    $displays[$name] = $extra_fields[$name]['display'][$actual_mode];
+    $options[$name] = $entity_display->getComponent($name);
   }
 
-  // Let modules alter the display settings.
-  $context = array(
-    'entity_type' => $entity_type,
-    'bundle' => $bundle,
-    'view_mode' => $view_mode,
-  );
-  drupal_alter('field_extra_fields_display', $displays, $context);
-
-  return $displays;
+  return $options;
 }
 
 /**
@@ -767,23 +783,10 @@ function _field_extra_fields_pre_render($elements) {
   $entity_type = $elements['#entity_type'];
   $bundle = $elements['#bundle'];
 
-  if (isset($elements['#type']) && $elements['#type'] == 'form') {
-    $extra_fields = field_info_extra_fields($entity_type, $bundle, 'form');
-    foreach ($extra_fields as $name => $settings) {
-      if (isset($elements[$name])) {
-        $elements[$name]['#weight'] = $settings['weight'];
-      }
-    }
-  }
-  elseif (isset($elements['#view_mode'])) {
-    $view_mode = $elements['#view_mode'];
-    $extra_fields = field_extra_fields_get_display($entity_type, $bundle, $view_mode);
-    foreach ($extra_fields as $name => $settings) {
-      if (isset($elements[$name])) {
-        $elements[$name]['#weight'] = $settings['weight'];
-        // Visibility: make sure we do not accidentally show a hidden element.
-        $elements[$name]['#access'] = isset($elements[$name]['#access']) ? ($elements[$name]['#access'] && $settings['visible']) : $settings['visible'];
-      }
+  $extra_fields = field_info_extra_fields($entity_type, $bundle, 'form');
+  foreach ($extra_fields as $name => $settings) {
+    if (isset($elements[$name])) {
+      $elements[$name]['#weight'] = $settings['weight'];
     }
   }
 
@@ -902,15 +905,14 @@ function field_view_value($entity_type, $entity, $field_name, $item, $display =
  *   key and the field data to display.
  * @param $field_name
  *   The name of the field to display.
- * @param $display
+ * @param $display_options
  *   Can be either:
  *   - The name of a view mode. The field will be displayed according to the
  *     display settings specified for this view mode in the $instance
  *     definition for the field in the entity's bundle. If no display settings
  *     are found for the view mode, the settings for the 'default' view mode
  *     will be used.
- *   - An array of display settings, as found in the 'display' entry of
- *     $instance definitions. The following key/value pairs are allowed:
+ *   - An array of display options. The following key/value pairs are allowed:
  *     - label: (string) Position of the label. The default 'field' theme
  *       implementation supports the values 'inline', 'above' and 'hidden'.
  *       Defaults to 'above'.
@@ -933,51 +935,73 @@ function field_view_value($entity_type, $entity, $field_name, $item, $display =
  *
  * @see field_view_value()
  */
-function field_view_field($entity_type, $entity, $field_name, $display = array(), $langcode = NULL) {
+function field_view_field($entity_type, $entity, $field_name, $display_options = array(), $langcode = NULL) {
   $output = array();
+  $bundle = $entity->bundle();
+
+  // Return nothing if the field doesn't exist.
+  $instance = field_info_instance($entity_type, $field_name, $bundle);
+  if (!$instance) {
+    return $output;
+  }
+
+  // Get the formatter object.
+  if (is_string($display_options)) {
+    $view_mode = $display_options;
+    // If the view mode is not configured to use dedicated settings,
+    // rendering is done using 'default'.
+    $actual_mode = field_get_actual_view_mode($entity_type, $entity->bundle(), $view_mode);
+    $formatter = entity_get_display($entity_type, $bundle, $actual_mode)->getFormatter($field_name);
+  }
+  else {
+    $view_mode = '_custom';
+    // hook_field_attach_display_alter() needs to receive the 'prepared'
+    // $display_options, so we cannot let preparation happen internally.
+    $field = field_info_field($field_name);
+    $formatter_manager = drupal_container()->get('plugin.manager.field.formatter');
+    $display_options = $formatter_manager->prepareConfiguration($field['type'], $display_options);
+    $formatter = $formatter_manager->getInstance(array(
+      'instance' => $instance,
+      'view_mode' => $view_mode,
+      'prepare' => FALSE,
+      'configuration' => $display_options,
+    ));
+  }
+
+  if ($formatter) {
+    $display_langcode = field_language($entity_type, $entity, $field_name, $langcode);
+    $items = $entity->{$field_name}[$display_langcode];
+
+    // Invoke prepare_view steps if needed.
+    if (empty($entity->_field_view_prepared)) {
+      $id = $entity->id();
+
+      // First let the field types do their preparation.
+      $options = array('field_name' => $field_name, 'langcode' => $display_langcode);
+      $null = NULL;
+      _field_invoke_multiple('prepare_view', $entity_type, array($id => $entity), $null, $null, $options);
 
-  if ($instance = field_info_instance($entity_type, $field_name, $entity->bundle())) {
-    if (is_array($display) && empty($display['type'])) {
-      $field = field_info_field($instance['field_name']);
-      $field_type_info = field_info_field_types($field['type']);
-      $display['type'] = $field_type_info['default_formatter'];
+      // Then let the formatter do its own specific massaging.
+      $items_multi = array($id => $entity->{$field_name}[$display_langcode]);
+      $formatter->prepareView(array($id => $entity), $display_langcode, $items_multi);
+      $items = $items_multi[$id];
     }
-    if ($formatter = $instance->getFormatter($display)) {
-      $display_langcode = field_language($entity_type, $entity, $field_name, $langcode);
-      $items = $entity->{$field_name}[$display_langcode];
-
-      // Invoke prepare_view steps if needed.
-      if (empty($entity->_field_view_prepared)) {
-        $id = $entity->id();
-
-        // First let the field types do their preparation.
-        // @todo invoke hook_field_prepare_view() directly ?
-        $options = array('field_name' => $field_name, 'langcode' => $display_langcode);
-        $null = NULL;
-        _field_invoke_multiple('prepare_view', $entity_type, array($id => $entity), $display, $null, $options);
-
-        // Then let the formatters do their own specific massaging.
-        $items_multi = array($id => $entity->{$field_name}[$display_langcode]);
-        $formatter->prepareView(array($id => $entity), $display_langcode, $items_multi);
-        $items = $items_multi[$id];
-      }
 
-      // Build the renderable array.
-      $result = $formatter->view($entity, $display_langcode, $items);
+    // Build the renderable array.
+    $result = $formatter->view($entity, $display_langcode, $items);
 
-      // Invoke hook_field_attach_view_alter() to let other modules alter the
-      // renderable array, as in a full field_attach_view() execution.
-      $context = array(
-        'entity_type' => $entity_type,
-        'entity' => $entity,
-        'view_mode' => '_custom',
-        'display' => $display,
-      );
-      drupal_alter('field_attach_view', $result, $context);
+    // Invoke hook_field_attach_view_alter() to let other modules alter the
+    // renderable array, as in a full field_attach_view() execution.
+    $context = array(
+      'entity_type' => $entity_type,
+      'entity' => $entity,
+      'view_mode' => $view_mode,
+      'display_options' => $display_options,
+    );
+    drupal_alter('field_attach_view', $result, $context);
 
-      if (isset($result[$field_name])) {
-        $output = $result[$field_name];
-      }
+    if (isset($result[$field_name])) {
+      $output = $result[$field_name];
     }
   }
 
diff --git a/core/modules/field/lib/Drupal/field/FieldInfo.php b/core/modules/field/lib/Drupal/field/FieldInfo.php
index 65aa26c..2f33c89 100644
--- a/core/modules/field/lib/Drupal/field/FieldInfo.php
+++ b/core/modules/field/lib/Drupal/field/FieldInfo.php
@@ -543,25 +543,7 @@ public function prepareExtraFields($extra_fields, $entity_type, $bundle) {
     }
 
     // Extra fields in displayed entities.
-    $data = $extra_fields['display'];
-    foreach ($extra_fields['display'] as $name => $field_data) {
-      $settings = isset($bundle_settings['extra_fields']['display'][$name]) ? $bundle_settings['extra_fields']['display'][$name] : array();
-      $view_modes = array_merge(array('default'), array_keys($entity_type_info['view_modes']));
-      foreach ($view_modes as $view_mode) {
-        if (isset($settings[$view_mode])) {
-          $field_data['display'][$view_mode] = $settings[$view_mode];
-        }
-        else {
-          $field_data['display'][$view_mode] = array(
-            'weight' => $field_data['weight'],
-            'visible' => isset($field_data['visible']) ? $field_data['visible'] : TRUE,
-          );
-        }
-      }
-      unset($field_data['weight']);
-      unset($field_data['visible']);
-      $result['display'][$name] = $field_data;
-    }
+    $result['display'] = $extra_fields['display'];
 
     return $result;
   }
diff --git a/core/modules/field/lib/Drupal/field/FieldInstance.php b/core/modules/field/lib/Drupal/field/FieldInstance.php
index a1e7a4f..ba6ea44 100644
--- a/core/modules/field/lib/Drupal/field/FieldInstance.php
+++ b/core/modules/field/lib/Drupal/field/FieldInstance.php
@@ -27,13 +27,6 @@ class FieldInstance implements \ArrayAccess {
   protected $widget;
 
   /**
-   * The formatter objects used for this instance, keyed by view mode.
-   *
-   * @var array
-   */
-  protected $formatters;
-
-  /**
    * Constructs a FieldInstance object.
    *
    * @param array $definition
@@ -75,88 +68,6 @@ public function getWidget() {
   }
 
   /**
-   * Returns a Formatter plugin for the instance.
-   *
-   * @param mixed $display_properties
-   *   Can be either:
-   *   - The name of a view mode.
-   *   - An array of display properties, as found in the 'display' entry of
-   *     $instance definitions.
-   *
-   * @return Drupal\field\Plugin\Type\Formatter\FormatterInterface|null
-   *   The Formatter plugin to be used for the instance, or NULL if the field
-   *   is hidden.
-   */
-  public function getFormatter($display_properties) {
-    if (is_string($display_properties)) {
-      // A view mode was provided. Switch to 'default' if the view mode is not
-      // configured to use dedicated settings.
-      $view_mode = $display_properties;
-      $view_mode_settings = field_view_mode_settings($this->definition['entity_type'], $this->definition['bundle']);
-      $actual_mode = (!empty($view_mode_settings[$view_mode]['custom_settings']) ? $view_mode : 'default');
-
-      if (isset($this->formatters[$actual_mode])) {
-        return $this->formatters[$actual_mode];
-      }
-
-      // Switch to 'hidden' if the instance has no properties for the view
-      // mode.
-      if (isset($this->definition['display'][$actual_mode])) {
-        $display_properties = $this->definition['display'][$actual_mode];
-      }
-      else {
-        $display_properties = array(
-          'type' => 'hidden',
-          'settings' => array(),
-          'label' => 'above',
-          'weight' => 0,
-        );
-      }
-
-      // Let modules alter the widget properties.
-      $context = array(
-        'entity_type' => $this->definition['entity_type'],
-        'bundle' => $this->definition['bundle'],
-        'field' => field_info_field($this->definition['field_name']),
-        'instance' => $this,
-        'view_mode' => $view_mode,
-      );
-      drupal_alter(array('field_display', 'field_display_' . $this->definition['entity_type']), $display_properties, $context);
-    }
-    else {
-      // Arbitrary display settings. Make sure defaults are present.
-      $display_properties += array(
-        'settings' => array(),
-        'label' => 'above',
-        'weight' => 0,
-      );
-      $view_mode = '_custom_display';
-    }
-
-    if (!empty($display_properties['type']) && $display_properties['type'] != 'hidden') {
-      $options = array(
-        'instance' => $this,
-        'type' => $display_properties['type'],
-        'settings' => $display_properties['settings'],
-        'label' => $display_properties['label'],
-        'weight' => $display_properties['weight'],
-        'view_mode' => $view_mode,
-      );
-      $formatter = drupal_container()->get('plugin.manager.field.formatter')->getInstance($options);
-    }
-    else {
-      $formatter = NULL;
-    }
-
-    // Persist the object if we were not passed custom display settings.
-    if (isset($actual_mode)) {
-      $this->formatters[$actual_mode] = $formatter;
-    }
-
-    return $formatter;
-  }
-
-  /**
    * Implements ArrayAccess::offsetExists().
    */
   public function offsetExists($offset) {
@@ -185,9 +96,6 @@ public function offsetSet($offset, $value) {
     if ($offset == 'widget') {
       unset($this->widget);
     }
-    if ($offset == 'display') {
-      unset($this->formatters);
-    }
   }
 
   /**
@@ -201,9 +109,6 @@ public function offsetUnset($offset) {
     if ($offset == 'widget') {
       unset($this->widget);
     }
-    if ($offset == 'display') {
-      unset($this->formatters);
-    }
   }
 
   /**
diff --git a/core/modules/field/lib/Drupal/field/Plugin/Type/Formatter/FormatterPluginManager.php b/core/modules/field/lib/Drupal/field/Plugin/Type/Formatter/FormatterPluginManager.php
index 55d0e3f..551d056 100644
--- a/core/modules/field/lib/Drupal/field/Plugin/Type/Formatter/FormatterPluginManager.php
+++ b/core/modules/field/lib/Drupal/field/Plugin/Type/Formatter/FormatterPluginManager.php
@@ -11,8 +11,9 @@
 use Drupal\Component\Plugin\Discovery\ProcessDecorator;
 use Drupal\Core\Plugin\Discovery\CacheDecorator;
 use Drupal\Core\Plugin\Discovery\AnnotatedClassDiscovery;
-use Drupal\field\Plugin\Type\Formatter\FormatterLegacyDiscoveryDecorator;
 use Drupal\Core\Plugin\Discovery\AlterDecorator;
+use Drupal\field\Plugin\Type\Formatter\FormatterLegacyDiscoveryDecorator;
+use Drupal\field\FieldInstance;
 
 /**
  * Plugin type manager for field formatters.
@@ -42,31 +43,87 @@ public function __construct() {
 
   /**
    * Overrides PluginManagerBase::getInstance().
+   *
+   * @param array $options
+   *   An array with the following key/value pairs:
+   *   - instance; (FieldInstance) The field instance.
+   *   - view_mode: (string) The view mode.
+   *   - prepare: (bool, optional) Whether default values should get merged in
+   *     the 'configuration' array. Defaults to TRUE.
+   *   - configuration: (array) the configuration for the formatter. The
+   *     following key value pairs are allowed, and are all optional if
+   *     'prepare' is TRUE:
+   *     - label: (string) Position of the label. The default 'field' theme
+   *       implementation supports the values 'inline', 'above' and 'hidden'.
+   *       Defaults to 'above'.
+   *     - type: (string) The formatter to use. Defaults to the
+   *       'default_formatter' for the field type, specified in
+   *       hook_field_info(). The default formatter will also be used if the
+   *       requested formatter is not available.
+   *     - settings: (array) Settings specific to the formatter. Each setting
+   *       defaults to the default value specified in the formatter definition.
+   *     - weight: (float) The weight to assign to the renderable element.
+   *       Defaults to 0.
+   *
+   * @return \Drupal\field\Plugin\Type\Formatter\FormatterInterface
+   *   A formatter object.
    */
   public function getInstance(array $options) {
+    $configuration = $options['configuration'];
     $instance = $options['instance'];
-    $type = $options['type'];
-
-    $definition = $this->getDefinition($type);
     $field = field_info_field($instance['field_name']);
 
+    // Fill in default configuration if needed.
+    if (!isset($options['prepare']) || $options['prepare'] == TRUE) {
+      $configuration = $this->prepareConfiguration($field['type'], $configuration);
+    }
+
+    $plugin_id = $configuration['type'];
+
     // Switch back to default formatter if either:
     // - $type_info doesn't exist (the widget type is unknown),
     // - the field type is not allowed for the widget.
+    $definition = $this->getDefinition($configuration['type']);
     if (!isset($definition['class']) || !in_array($field['type'], $definition['field_types'])) {
       // Grab the default widget for the field type.
       $field_type_definition = field_info_field_types($field['type']);
-      $type = $field_type_definition['default_formatter'];
+      $plugin_id = $field_type_definition['default_formatter'];
     }
 
-    $configuration = array(
+    $configuration += array(
       'instance' => $instance,
-      'settings' => $options['settings'],
-      'weight' => $options['weight'],
-      'label' => $options['label'],
       'view_mode' => $options['view_mode'],
     );
-    return $this->createInstance($type, $configuration);
+    return $this->createInstance($plugin_id, $configuration);
+  }
+
+  /**
+   * Merges default values for formatter configuration.
+   *
+   * @param string $field_type
+   *   The field type.
+   * @param array $properties
+   *   An array of formatter configuration.
+   *
+   * @return array
+   *   The display properties with defaults added.
+   */
+  public function prepareConfiguration($field_type, array $configuration) {
+    // Fill in defaults for missing properties.
+    $configuration += array(
+      'label' => 'above',
+      'settings' => array(),
+      'weight' => 0,
+    );
+    // If no formatter is specified, use the default formatter.
+    if (!isset($configuration['type'])) {
+      $field_type = field_info_field_types($field_type);
+      $configuration['type'] = $field_type['default_formatter'];
+    }
+    // Fill in default settings values for the formatter.
+    $configuration['settings'] += field_info_formatter_settings($configuration['type']);
+
+    return $configuration;
   }
 
 }
diff --git a/core/modules/field/tests/modules/field_test/field_test.module b/core/modules/field/tests/modules/field_test/field_test.module
index 903c2f9..b7448f5 100644
--- a/core/modules/field/tests/modules/field_test/field_test.module
+++ b/core/modules/field/tests/modules/field_test/field_test.module
@@ -206,7 +206,7 @@ function field_test_entity_label_callback($entity_type, $entity, $langcode = NUL
  * Implements hook_field_attach_view_alter().
  */
 function field_test_field_attach_view_alter(&$output, $context) {
-  if (!empty($context['display']['settings']['alter'])) {
+  if (!empty($context['display_options']['settings']['alter'])) {
     $output['test_field'][] = array('#markup' => 'field_test_field_attach_view_alter');
   }
 }
diff --git a/core/modules/field_ui/field_ui.admin.inc b/core/modules/field_ui/field_ui.admin.inc
index 00cb8de..27dad1e 100644
--- a/core/modules/field_ui/field_ui.admin.inc
+++ b/core/modules/field_ui/field_ui.admin.inc
@@ -374,51 +374,6 @@ function field_ui_display_overview($entity_type, $bundle, $view_mode) {
 }
 
 /**
- * Populates display settings for a new view mode from the default view mode.
- *
- * When an administrator decides to use custom display settings for a view mode,
- * that view mode needs to be initialized with the display settings for the
- * 'default' view mode, which it was previously using. This helper function
- * adds the new custom display settings to this bundle's instances, and saves
- * them. It also modifies the passed-in $settings array, which the caller can
- * then save using field_bundle_settings().
- *
- * @param $entity_type
- *   The bundle's entity type.
- * @param $bundle
- *   The bundle whose view mode is being customized.
- * @param $view_mode
- *   The view mode that the administrator has set to use custom settings.
- * @param $settings
- *   An associative array of bundle settings, as expected by
- *   field_bundle_settings().
- *
- * @see Drupal\field_ui\DisplayOverview::submit().
- * @see field_bundle_settings()
- */
-function _field_ui_add_default_view_mode_settings($entity_type, $bundle, $view_mode, &$settings) {
-  // Update display settings for field instances.
-  $instances = field_read_instances(array('entity_type' => $entity_type, 'bundle' => $bundle));
-  foreach ($instances as $instance) {
-    // If this field instance has display settings defined for this view mode,
-    // respect those settings.
-    if (!isset($instance['display'][$view_mode])) {
-      // The instance doesn't specify anything for this view mode, so use the
-      // default display settings.
-      $instance['display'][$view_mode] = $instance['display']['default'];
-      field_update_instance($instance);
-    }
-  }
-
-  // Update display settings for 'extra fields'.
-  foreach (array_keys($settings['extra_fields']['display']) as $name) {
-    if (!isset($settings['extra_fields']['display'][$name][$view_mode])) {
-      $settings['extra_fields']['display'][$name][$view_mode] = $settings['extra_fields']['display'][$name]['default'];
-    }
-  }
-}
-
-/**
  * Returns an array of field_type options.
  */
 function field_ui_field_type_options() {
diff --git a/core/modules/field_ui/lib/Drupal/field_ui/DisplayOverview.php b/core/modules/field_ui/lib/Drupal/field_ui/DisplayOverview.php
index 6117de9..0a86f78 100644
--- a/core/modules/field_ui/lib/Drupal/field_ui/DisplayOverview.php
+++ b/core/modules/field_ui/lib/Drupal/field_ui/DisplayOverview.php
@@ -49,6 +49,7 @@ public function form(array $form, array &$form_state) {
     $instances = field_info_instances($this->entity_type, $this->bundle);
     $field_types = field_info_field_types();
     $extra_fields = field_info_extra_fields($this->entity_type, $this->bundle, 'display');
+    $entity_display = entity_get_display($this->entity_type, $this->bundle, $this->view_mode);
 
     $form_state += array(
       'formatter_settings_edit' => NULL,
@@ -94,24 +95,14 @@ public function form(array $form, array &$form_state) {
       'hidden' => t('<Hidden>'),
     );
     $extra_visibility_options = array(
-      'content' => t('Visible'),
+      'visible' => t('Visible'),
       'hidden' => t('Hidden'),
     );
 
     // Field rows.
     foreach ($instances as $name => $instance) {
-      $field = field_info_field($instance['field_name']);
-
-      if (isset($instance['display'][$this->view_mode])) {
-        $display = $instance['display'][$this->view_mode];
-      }
-      else {
-        $display = array(
-          'type' => 'hidden',
-          'label' => 'above',
-          'weight' => 0,
-        );
-      }
+      $field = field_info_field($name);
+      $display_options = $entity_display->getComponent($name);
 
       $table[$name] = array(
         '#attributes' => array('class' => array('draggable', 'tabledrag-leaf')),
@@ -128,7 +119,7 @@ public function form(array $form, array &$form_state) {
           '#type' => 'textfield',
           '#title' => t('Weight for @title', array('@title' => $instance['label'])),
           '#title_display' => 'invisible',
-          '#default_value' => $display['weight'],
+          '#default_value' => $display_options ? $display_options['weight'] : '0',
           '#size' => 3,
           '#attributes' => array('class' => array('field-weight')),
         ),
@@ -153,7 +144,7 @@ public function form(array $form, array &$form_state) {
           '#title' => t('Label display for @title', array('@title' => $instance['label'])),
           '#title_display' => 'invisible',
           '#options' => $field_label_options,
-          '#default_value' => $display['label'],
+          '#default_value' => $display_options ? $display_options['label'] : 'above',
         ),
       );
 
@@ -165,7 +156,7 @@ public function form(array $form, array &$form_state) {
           '#title' => t('Formatter for @title', array('@title' => $instance['label'])),
           '#title_display' => 'invisible',
           '#options' => $formatter_options,
-          '#default_value' => $display['type'],
+          '#default_value' => $display_options ? $display_options['type'] : 'hidden',
           '#parents' => array('fields', $name, 'type'),
           '#attributes' => array('class' => array('field-formatter-type')),
         ),
@@ -175,12 +166,23 @@ public function form(array $form, array &$form_state) {
       // Check the currently selected formatter, and merge persisted values for
       // formatter settings.
       if (isset($form_state['values']['fields'][$name]['type'])) {
-        $display['type'] = $form_state['values']['fields'][$name]['type'];
+        $display_options['type'] = $form_state['values']['fields'][$name]['type'];
       }
       if (isset($form_state['formatter_settings'][$name])) {
-        $display['settings'] = $form_state['formatter_settings'][$name];
+        $display_options['settings'] = $form_state['formatter_settings'][$name];
+      }
+
+      // Get the corresponding formatter object.
+      if ($display_options && $display_options['type'] != 'hidden') {
+        $formatter = drupal_container()->get('plugin.manager.field.formatter')->getInstance(array(
+          'instance' => $instance,
+          'view_mode' => $this->view_mode,
+          'configuration' => $display_options
+        ));
+      }
+      else {
+        $formatter = NULL;
       }
-      $formatter = $instance->getFormatter($display);
 
       // Base button element for the various formatter settings actions.
       $base_button = array(
@@ -287,7 +289,8 @@ public function form(array $form, array &$form_state) {
 
     // Non-field elements.
     foreach ($extra_fields as $name => $extra_field) {
-      $display = $extra_field['display'][$this->view_mode];
+      $display_options = $entity_display->getComponent($name);
+
       $table[$name] = array(
         '#attributes' => array('class' => array('draggable', 'tabledrag-leaf')),
         '#row_type' => 'extra_field',
@@ -300,7 +303,7 @@ public function form(array $form, array &$form_state) {
           '#type' => 'textfield',
           '#title' => t('Weight for @title', array('@title' => $extra_field['label'])),
           '#title_display' => 'invisible',
-          '#default_value' => $display['weight'],
+          '#default_value' => $display_options ? $display_options['weight'] : 0,
           '#size' => 3,
           '#attributes' => array('class' => array('field-weight')),
         ),
@@ -329,7 +332,7 @@ public function form(array $form, array &$form_state) {
             '#title' => t('Visibility for @title', array('@title' => $extra_field['label'])),
             '#title_display' => 'invisible',
             '#options' => $extra_visibility_options,
-            '#default_value' => $display['visible'] ? 'content' : 'hidden',
+            '#default_value' => $display_options ? 'visible' : 'hidden',
             '#parents' => array('fields', $name, 'type'),
             '#attributes' => array('class' => array('field-formatter-type')),
           ),
@@ -418,73 +421,86 @@ public function form(array $form, array &$form_state) {
    */
   public function submit(array $form, array &$form_state) {
     $form_values = $form_state['values'];
+    $display = entity_get_display($this->entity_type, $this->bundle, $this->view_mode);
 
-    // Save data for 'regular' fields.
+    // Collect data for 'regular' fields.
     foreach ($form['#fields'] as $field_name) {
       // Retrieve the stored instance settings to merge with the incoming
       // values.
-      $instance = field_read_instance($this->entity_type, $field_name, $this->bundle);
       $values = $form_values['fields'][$field_name];
-      // Get formatter settings. They lie either directly in submitted form
-      // values (if the whole form was submitted while some formatter
-      // settings were being edited), or have been persisted in
-      // $form_state.
-      $settings = array();
-      if (isset($values['settings_edit_form']['settings'])) {
-        $settings = $values['settings_edit_form']['settings'];
-      }
-      elseif (isset($form_state['formatter_settings'][$field_name])) {
-        $settings = $form_state['formatter_settings'][$field_name];
-      }
-      elseif (isset($instance['display'][$this->view_mode]['settings'])) {
-        $settings = $instance['display'][$this->view_mode]['settings'];
+
+      if ($values['type'] == 'hidden') {
+        $display->removeComponent($field_name);
       }
+      else {
+        // Get formatter settings. They lie either directly in submitted form
+        // values (if the whole form was submitted while some formatter
+        // settings were being edited), or have been persisted in $form_state.
+        $settings = array();
+        if (isset($values['settings_edit_form']['settings'])) {
+          $settings = $values['settings_edit_form']['settings'];
+        }
+        elseif (isset($form_state['formatter_settings'][$field_name])) {
+          $settings = $form_state['formatter_settings'][$field_name];
+        }
+        elseif ($current_options = $display->getComponent($field_name)) {
+          $settings = $current_options['settings'];
+        }
 
-      // Only save settings actually used by the selected formatter.
-      $default_settings = field_info_formatter_settings($values['type']);
-      $settings = array_intersect_key($settings, $default_settings);
+        // Only save settings actually used by the selected formatter.
+        $default_settings = field_info_formatter_settings($values['type']);
+        $settings = array_intersect_key($settings, $default_settings);
 
-      $instance['display'][$this->view_mode] = array(
-        'label' => $values['label'],
-        'type' => $values['type'],
-        'weight' => $values['weight'],
-        'settings' => $settings,
-      );
-      field_update_instance($instance);
+        $display->setComponent($field_name, array(
+          'label' => $values['label'],
+          'type' => $values['type'],
+          'weight' => $values['weight'],
+          'settings' => $settings,
+        ));
+      }
     }
 
-    // Get current bundle settings.
-    $bundle_settings = field_bundle_settings($this->entity_type, $this->bundle);
-
-    // Save data for 'extra' fields.
+    // Collect data for 'extra' fields.
     foreach ($form['#extra'] as $name) {
-      $bundle_settings['extra_fields']['display'][$name][$this->view_mode] = array(
-        'weight' => $form_values['fields'][$name]['weight'],
-        'visible' => $form_values['fields'][$name]['type'] == 'content',
-      );
+      if ($form_values['fields'][$name]['type'] == 'hidden') {
+        $display->removeComponent($name);
+      }
+      else {
+        $display->setComponent($name, array(
+          'weight' => $form_values['fields'][$name]['weight'],
+        ));
+      }
     }
 
-    // Save view modes data.
+    // Save the display.
+    $display->save();
+
+    // Handle the 'view modes' checkboxes if present.
     if ($this->view_mode == 'default' && !empty($form_values['view_modes_custom'])) {
       $entity_info = entity_get_info($this->entity_type);
-      foreach ($form_values['view_modes_custom'] as $view_mode_name => $value) {
-        // Display a message for each view mode newly configured to use custom
-        // settings.
-        $view_mode_settings = field_view_mode_settings($this->entity_type, $this->bundle);
-        if (!empty($value) && empty($view_mode_settings[$view_mode_name]['custom_settings'])) {
-          $view_mode_label = $entity_info['view_modes'][$view_mode_name]['label'];
-          $path = field_ui_bundle_admin_path($this->entity_type, $this->bundle) . "/display/$view_mode_name";
+      $bundle_settings = field_bundle_settings($this->entity_type, $this->bundle);
+      $view_mode_settings = field_view_mode_settings($this->entity_type, $this->bundle);
+
+      foreach ($form_values['view_modes_custom'] as $view_mode => $value) {
+        if (!empty($value) && empty($view_mode_settings[$view_mode]['custom_settings'])) {
+          // If no display exists for the newly enabled view mode, initialize
+          // it with those from the 'default' view mode, which were used so
+          // far.
+          if (!entity_load('entity_display', $this->entity_type . '.' . $this->bundle . '.' . $view_mode)) {
+            $display = entity_get_display($this->entity_type, $this->bundle, 'default')->createCopy($view_mode);
+            $display->save();
+          }
+
+          $view_mode_label = $entity_info['view_modes'][$view_mode]['label'];
+          $path = field_ui_bundle_admin_path($this->entity_type, $this->bundle) . "/display/$view_mode";
           drupal_set_message(t('The %view_mode mode now uses custom display settings. You might want to <a href="@url">configure them</a>.', array('%view_mode' => $view_mode_label, '@url' => url($path))));
-          // Initialize the newly customized view mode with the display settings
-          // from the default view mode.
-          _field_ui_add_default_view_mode_settings($this->entity_type, $this->bundle, $view_mode_name, $bundle_settings);
         }
-        $bundle_settings['view_modes'][$view_mode_name]['custom_settings'] = !empty($value);
+        $bundle_settings['view_modes'][$view_mode]['custom_settings'] = !empty($value);
       }
-    }
 
-    // Save updated bundle settings.
-    field_bundle_settings($this->entity_type, $this->bundle, $bundle_settings);
+      // Save updated bundle settings.
+      field_bundle_settings($this->entity_type, $this->bundle, $bundle_settings);
+    }
 
     drupal_set_message(t('Your settings have been saved.'));
   }
diff --git a/core/modules/field_ui/lib/Drupal/field_ui/FieldOverview.php b/core/modules/field_ui/lib/Drupal/field_ui/FieldOverview.php
index 2d88051..a977df9 100644
--- a/core/modules/field_ui/lib/Drupal/field_ui/FieldOverview.php
+++ b/core/modules/field_ui/lib/Drupal/field_ui/FieldOverview.php
@@ -586,6 +586,13 @@ public function submit(array $form, array &$form_state) {
         field_create_field($field);
         field_create_instance($instance);
 
+        // Make sure the field is displayed in the 'default' view mode (using
+        // default formatter and settings). It stays hidden for other view
+        // modes until it is explicitly configured.
+        entity_get_display($this->entity_type, $this->bundle, 'default')
+          ->setComponent($field['field_name'])
+          ->save();
+
         // Always show the field settings step, as the cardinality needs to be
         // configured for new fields.
         $destinations[] = $this->adminPath. '/fields/' . $field['field_name'] . '/field-settings';
@@ -620,6 +627,14 @@ public function submit(array $form, array &$form_state) {
 
         try {
           field_create_instance($instance);
+
+          // Make sure the field is displayed in the 'default' view mode (using
+          // default formatter and settings). It stays hidden for other view
+          // modes until it is explicitly configured.
+          entity_get_display($this->entity_type, $this->bundle, 'default')
+            ->setComponent($field['field_name'])
+            ->save();
+
           $destinations[] = $this->adminPath . '/fields/' . $instance['field_name'];
           // Store new field information for any additional submit handlers.
           $form_state['fields_added']['_add_existing_field'] = $instance['field_name'];
diff --git a/core/modules/forum/forum.install b/core/modules/forum/forum.install
index 56f8402..69954cb 100644
--- a/core/modules/forum/forum.install
+++ b/core/modules/forum/forum.install
@@ -90,18 +90,22 @@ function forum_enable() {
       'widget' => array(
         'type' => 'options_select',
       ),
-      'display' => array(
-        'default' => array(
-          'type' => 'taxonomy_term_reference_link',
-          'weight' => 10,
-        ),
-        'teaser' => array(
-          'type' => 'taxonomy_term_reference_link',
-          'weight' => 10,
-        ),
-      ),
     );
     field_create_instance($instance);
+
+    // Assign display settings for the 'default' and 'teaser' view modes.
+    entity_get_display('node', 'forum', 'default')
+      ->setComponent('taxonomy_forums', array(
+        'type' => 'taxonomy_term_reference_link',
+        'weight' => 10,
+      ))
+      ->save();
+    entity_get_display('node', 'forum', 'teaser')
+      ->setComponent('taxonomy_forums', array(
+        'type' => 'taxonomy_term_reference_link',
+        'weight' => 10,
+      ))
+      ->save();
   }
 
   // Ensure the forum node type is available.
diff --git a/core/modules/image/image.module b/core/modules/image/image.module
index 221e07c..8312420 100644
--- a/core/modules/image/image.module
+++ b/core/modules/image/image.module
@@ -334,21 +334,23 @@ function image_image_style_save($style) {
     // Loop through all fields searching for image fields.
     foreach ($instances as $instance) {
       if ($instance['widget']['module'] == 'image') {
-        $instance_changed = FALSE;
-        foreach ($instance['display'] as $view_mode => $display) {
+        $entity_info = entity_get_info($instance['entity_type']);
+        $view_modes = array('default') + array_keys($entity_info['view_modes']);
+        foreach ($view_modes as $view_mode) {
+          $display = entity_get_display($instance['entity_type'], $instance['bundle'], $view_mode);
+          $display_options = $display->getComponent($instance['field_name']);
+
           // Check if the formatter involves an image style.
-          if ($display['type'] == 'image' && $display['settings']['image_style'] == $style->getOriginalID()) {
+          if ($display_options && $display_options['type'] == 'image' && $display_options['settings']['image_style'] == $style->getOriginalID()) {
             // Update display information for any instance using the image
             // style that was just deleted.
-            $instance['display'][$view_mode]['settings']['image_style'] = $style->id();
-            $instance_changed = TRUE;
+            $display_options['settings']['image_style'] = $style->id();
+            $display->setComponent($instance['field_name'], $display_options)
+              ->save();
           }
         }
         if ($instance['widget']['settings']['preview_image_style'] == $style->getOriginalID()) {
           $instance['widget']['settings']['preview_image_style'] = $style->id();
-          $instance_changed = TRUE;
-        }
-        if ($instance_changed) {
           field_update_instance($instance);
         }
       }
diff --git a/core/modules/node/node.module b/core/modules/node/node.module
index a37679c..d56bee5 100644
--- a/core/modules/node/node.module
+++ b/core/modules/node/node.module
@@ -19,6 +19,7 @@
 use Drupal\node\Plugin\Core\Entity\Node;
 use Drupal\file\Plugin\Core\Entity\File;
 use Drupal\Core\Entity\EntityInterface;
+use Drupal\entity\Plugin\Core\Entity\EntityDisplay;
 
 /**
  * Denotes that the node is not published.
@@ -212,12 +213,17 @@ function node_entity_info(&$info) {
 }
 
 /**
- * Implements hook_field_display_ENTITY_TYPE_alter().
+ * Implements hook_entity_display_alter().
  */
-function node_field_display_node_alter(&$display, $context) {
+function node_entity_display_alter(EntityDisplay $display, $context) {
   // Hide field labels in search index.
-  if ($context['view_mode'] == 'search_index') {
-    $display['label'] = 'hidden';
+  if ($context['entity_type'] == 'node' && $context['view_mode'] == 'search_index') {
+    foreach ($display->getComponents() as $name => $options) {
+      if (isset($options['label'])) {
+        $options['label'] = 'hidden';
+        $display->setComponent($name, $options);
+      }
+    }
   }
 }
 
@@ -559,19 +565,24 @@ function node_add_body_field($type, $label = 'Body') {
       'label' => $label,
       'widget' => array('type' => 'text_textarea_with_summary'),
       'settings' => array('display_summary' => TRUE),
-      'display' => array(
-        'default' => array(
-          'label' => 'hidden',
-          'type' => 'text_default',
-        ),
-        'teaser' => array(
-          'label' => 'hidden',
-          'type' => 'text_summary_or_trimmed',
-        ),
-      ),
     );
     $instance = field_create_instance($instance);
+
+    // Assign display settings for the 'default' and 'teaser' view modes.
+    entity_get_display('node', $type->type, 'default')
+      ->setComponent($field['field_name'], array(
+        'label' => 'hidden',
+        'type' => 'text_default',
+      ))
+      ->save();
+    entity_get_display('node', $type->type, 'teaser')
+      ->setComponent($field['field_name'], array(
+        'label' => 'hidden',
+        'type' => 'text_summary_or_trimmed',
+      ))
+      ->save();
   }
+
   return $instance;
 }
 
diff --git a/core/modules/node/node.pages.inc b/core/modules/node/node.pages.inc
index 0a18ec1..10e734a 100644
--- a/core/modules/node/node.pages.inc
+++ b/core/modules/node/node.pages.inc
@@ -144,8 +144,6 @@ function node_preview(Node $node) {
     }
 
     $node->changed = REQUEST_TIME;
-    $nodes = array($node->nid => $node);
-    field_attach_prepare_view('node', $nodes, 'full');
 
     // Display a preview of the node.
     if (!form_get_errors()) {
@@ -180,7 +178,7 @@ function theme_node_preview($variables) {
   $elements = node_view(clone $node, 'teaser');
   $elements['#attached']['library'][] = array('node', 'drupal.node.preview');
   $trimmed = drupal_render($elements);
-  $elements = node_view($node, 'full');
+  $elements = node_view(clone $node, 'full');
   $full = drupal_render($elements);
 
   // Do we need to preview trimmed version of post as well as full version?
diff --git a/core/modules/node/node.tokens.inc b/core/modules/node/node.tokens.inc
index 2d783c9..8827b98 100644
--- a/core/modules/node/node.tokens.inc
+++ b/core/modules/node/node.tokens.inc
@@ -149,7 +149,19 @@ function node_tokens($type, $tokens, array $data = array(), array $options = arr
               // A summary was requested.
               if ($name == 'summary') {
                 // Generate an optionally trimmed summary of the body field.
-                $output = text_summary($output, $instance['settings']['text_processing'] ? $items[0]['format'] : NULL, $instance['display']['teaser']['settings']['trim_length']);
+
+                // Get the 'trim_length' size used for the 'teaser' mode, if
+                // present, or use the default trim_length size.
+                $display_options = entity_get_display('node', $node->type, 'teaser')->getComponent('body');
+                if (isset($display_options['settings']['trim_length'])) {
+                  $length = $display_options['settings']['trim_length'];
+                }
+                else {
+                  $settings = field_info_formatter_settings('text_summary_or_trimmed');
+                  $length = $settings['trim_length'];
+                }
+
+                $output = text_summary($output, $instance['settings']['text_processing'] ? $items[0]['format'] : NULL, $length);
               }
             }
             $replacements[$original] = $output;
diff --git a/core/modules/system/lib/Drupal/system/Tests/Upgrade/FieldUpgradePathTest.php b/core/modules/system/lib/Drupal/system/Tests/Upgrade/FieldUpgradePathTest.php
new file mode 100644
index 0000000..5d92522
--- /dev/null
+++ b/core/modules/system/lib/Drupal/system/Tests/Upgrade/FieldUpgradePathTest.php
@@ -0,0 +1,83 @@
+<?php
+
+/**
+ * @file
+ * Contains \Drupal\system\Tests\Upgrade\FieldUpgradePathTest.
+ */
+
+namespace Drupal\system\Tests\Upgrade;
+
+/**
+ * Tests upgrade of system variables.
+ */
+class FieldUpgradePathTest extends UpgradePathTestBase {
+
+  public static function getInfo() {
+    return array(
+      'name' => 'Field upgrade test',
+      'description' => 'Tests upgrade of Field API.',
+      'group' => 'Upgrade path',
+    );
+  }
+
+  public function setUp() {
+    $this->databaseDumpFiles = array(
+      drupal_get_path('module', 'system') . '/tests/upgrade/drupal-7.bare.standard_all.database.php.gz',
+      drupal_get_path('module', 'system') . '/tests/upgrade/drupal-7.field.database.php',
+    );
+    parent::setUp();
+  }
+
+  /**
+   * Tests upgrade of entity displays.
+   */
+  public function testEntityDisplayUpgrade() {
+    $this->assertTrue($this->performUpgrade(), 'The upgrade was completed successfully.');
+
+    // Check that the configuration entries were created.
+    $displays = array(
+      'default' => config('entity.display.node.article.default')->get(),
+      'teaser' => config('entity.display.node.article.teaser')->get(),
+    );
+    $this->assertTrue(!empty($displays['default']));
+    $this->assertTrue(!empty($displays['teaser']));
+
+    // Check that the 'body' field is configured as expected.
+    $expected = array(
+      'default' => array(
+        'label' => 'hidden',
+        'type' => 'text_default',
+        'weight' => 0,
+        'settings' => array(),
+      ),
+      'teaser' => array(
+        'label' => 'hidden',
+        'type' => 'text_summary_or_trimmed',
+        'weight' => 0,
+        'settings' => array(
+          'trim_length' => 600,
+        ),
+      ),
+    );
+    $this->assertEqual($displays['default']['content']['body'], $expected['default']);
+    $this->assertEqual($displays['teaser']['content']['body'], $expected['teaser']);
+
+    // Check that the display key in the instance data was removed.
+    $body_instance = field_info_instance('node', 'body', 'article');
+    $this->assertTrue(!isset($body_instance['display']));
+
+    // Check that the 'language' extra field is configured as expected.
+    $expected = array(
+      'default' => array(
+        'weight' => -1,
+        'visible' => 1,
+      ),
+      'teaser' => array(
+        'visible' => 0,
+      ),
+    );
+    $this->assertEqual($displays['default']['content']['language'], $expected['default']);
+    $this->assertEqual($displays['teaser']['content']['language'], $expected['teaser']);
+  }
+
+}
diff --git a/core/modules/system/tests/modules/entity_test/entity_test.module b/core/modules/system/tests/modules/entity_test/entity_test.module
index dcc020a..44983e4 100644
--- a/core/modules/system/tests/modules/entity_test/entity_test.module
+++ b/core/modules/system/tests/modules/entity_test/entity_test.module
@@ -19,6 +19,32 @@ function entity_test_entity_info_alter(&$info) {
 }
 
 /**
+ * Implements hook_field_extra_fields().
+ */
+function entity_test_field_extra_fields() {
+  $extra['entity_test']['entity_test'] = array(
+    'display' => array(
+      // Note: those extra fields do not currently display anything, they are
+      // just used in \Drupal\entity\Tests\EntityDisplayTest to test the
+      // behavior of entity display objects,
+      'display_extra_field' => array(
+        'label' => t('Display extra field'),
+        'description' => t('An extra field on the display side.'),
+        'weight' => 5,
+        'vidible' => TRUE,
+      ),
+      'display_extra_field_hidden' => array(
+        'label' => t('Display extra field (hidden)'),
+        'description' => t('An extra field on the display side, hidden by default.'),
+        'visible' => FALSE,
+      ),
+    )
+  );
+
+  return $extra;
+}
+
+/**
  * Implements hook_permission().
  */
 function entity_test_permission() {
diff --git a/core/modules/system/tests/upgrade/drupal-7.field.database.php b/core/modules/system/tests/upgrade/drupal-7.field.database.php
new file mode 100644
index 0000000..0862650
--- /dev/null
+++ b/core/modules/system/tests/upgrade/drupal-7.field.database.php
@@ -0,0 +1,51 @@
+<?php
+
+/**
+ * @file
+ * Database additions for field variables. Used in FieldUpgradePathTest.
+ *
+ * The drupal-7.bare.database.php file is imported before this dump, so the
+ * two form the database structure expected in tests altogether.
+ */
+
+// Add a 'bundle settings' variable for article nodes.
+$value = array(
+  'view_modes' => array(
+    'teaser' => array(
+      'custom_settings' => 1,
+    ),
+    'full' => array(
+      'custom_settings' => 0,
+    ),
+    'rss' => array(
+      'custom_settings' => 0,
+    ),
+    'search_index' => array(
+      'custom_settings' => 0,
+    ),
+    'search_result' => array(
+      'custom_settings' => 0,
+    ),
+  ),
+  'extra_fields' => array(
+    'form' => array(),
+    'display' => array(
+      'language' => array(
+        'default' => array(
+          'weight' => -1,
+          'visible' => 1,
+        ),
+        'teaser' => array(
+          'weight' => 0,
+          'visible' => 0,
+        ),
+      ),
+    ),
+  ),
+);
+db_insert('variable')
+  ->fields(array(
+    'name' => 'field_bundle_settings_node__article',
+    'value' => serialize($value),
+  ))
+  ->execute();
diff --git a/core/modules/taxonomy/lib/Drupal/taxonomy/TermRenderController.php b/core/modules/taxonomy/lib/Drupal/taxonomy/TermRenderController.php
index c22f6e3..56cc036 100644
--- a/core/modules/taxonomy/lib/Drupal/taxonomy/TermRenderController.php
+++ b/core/modules/taxonomy/lib/Drupal/taxonomy/TermRenderController.php
@@ -25,11 +25,11 @@ public function buildContent(array $entities = array(), $view_mode = 'full', $la
       // Add the description if enabled.
       $bundle = $entity->bundle();
       $entity_view_mode = $entity->content['#view_mode'];
-      $fields = field_extra_fields_get_display($this->entityType, $bundle, $entity_view_mode);
-      if (!empty($entity->description) && isset($fields['description']) && $fields['description']['visible']) {
+      $display = field_extra_fields_get_display($this->entityType, $bundle, $entity_view_mode);
+      if (!empty($entity->description) && !empty($display['description'])) {
         $entity->content['description'] = array(
           '#markup' => check_markup($entity->description, $entity->format, '', TRUE),
-          '#weight' => $fields['description']['weight'],
+          '#weight' => $display['description']['weight'],
           '#prefix' => '<div class="taxonomy-term-description">',
           '#suffix' => '</div>',
         );
diff --git a/core/modules/user/user.install b/core/modules/user/user.install
index a7976e5..cfcaf1f 100644
--- a/core/modules/user/user.install
+++ b/core/modules/user/user.install
@@ -804,14 +804,6 @@ function user_update_8011() {
   );
   _update_7000_field_create_field($field);
 
-  // In D7, user pictures did not require Image module to work. Image module
-  // only allowed usage of an image style to format user pictures in the
-  // output. The 'user_pictures' variable had a global effect on the presence
-  // of the user picture functionality before. The new user picture image field
-  // is created regardless of that global setting, which means the field
-  // appears on the user account form after migration, even if user pictures
-  // were disabled previously. The picture is only hidden in the output.
-  $formatter = update_variable_get('user_pictures', 0) ? 'image' : 'hidden';
   $instance = array(
     'field_name' => 'user_picture',
     'entity_type' => 'user',
@@ -838,27 +830,43 @@ function user_update_8011() {
       ),
       'weight' => -1,
     ),
-    'display' => array(
-      'default' => array(
-        'label' => 'hidden',
-        'type' => $formatter,
-        'settings' => array(
-          'image_style' => 'thumbnail',
-          'image_link' => 'content',
-        ),
-      ),
-      'compact' => array(
-        'label' => 'hidden',
-        'type' => $formatter,
-        'settings' => array(
-          'image_style' => update_variable_get('user_picture_style', ''),
-          'image_link' => 'content',
-        ),
-      ),
-    ),
   );
   _update_7000_field_create_instance($field, $instance);
 
+  // Assign display settings for the 'default' and 'compact' view modes. In D7,
+  // user pictures did not require Image module to work. Image module only
+  // allowed usage of an image style to format user pictures in the output.
+  // The 'user_pictures' variable had a global effect on the presence of the
+  // user picture functionality before. The new user picture image field is
+  // created regardless of that global setting, which means the field appears
+  // on the user account form after migration, even if user pictures were
+  // disabled previously. The picture is only hidden in the output.
+  $formatter = update_variable_get('user_pictures', 0) ? 'image' : 'hidden';
+  module_load_install('entity');
+
+  _entity_update_8000_get_display_config('user', 'user', 'default')
+    ->set('content.user_picture', array(
+      'label' => 'hidden',
+      'type' => $formatter,
+      'settings' => array(
+        'image_style' => 'thumbnail',
+        'image_link' => 'content',
+      ),
+      'weight' => 0,
+    ))
+    ->save();
+  _entity_update_8000_get_display_config('user', 'user', 'compact')
+    ->set('content.user_picture', array(
+      'label' => 'hidden',
+      'type' => $formatter,
+      'settings' => array(
+        'image_style' => update_variable_get('user_picture_style', ''),
+        'image_link' => 'content',
+      ),
+      'weight' => 0,
+    ))
+    ->save();
+
   // Add file usage for the default field.
   if (!empty($default_image_fid)) {
     db_insert('file_usage')
diff --git a/core/profiles/standard/standard.install b/core/profiles/standard/standard.install
index 725874c..26f4f55 100644
--- a/core/profiles/standard/standard.install
+++ b/core/profiles/standard/standard.install
@@ -295,19 +295,22 @@ function standard_install() {
       'type' => 'taxonomy_autocomplete',
       'weight' => -4,
     ),
-    'display' => array(
-      'default' => array(
-        'type' => 'taxonomy_term_reference_link',
-        'weight' => 10,
-      ),
-      'teaser' => array(
-        'type' => 'taxonomy_term_reference_link',
-        'weight' => 10,
-      ),
-    ),
   );
   field_create_instance($instance);
 
+  // Assign display settings for the 'default' and 'teaser' view modes.
+  entity_get_display('node', 'article', 'default')
+    ->setComponent($instance['field_name'], array(
+      'type' => 'taxonomy_term_reference_link',
+      'weight' => 10,
+    ))
+    ->save();
+  entity_get_display('node', 'article', 'teaser')
+    ->setComponent($instance['field_name'], array(
+      'type' => 'taxonomy_term_reference_link',
+      'weight' => 10,
+    ))
+    ->save();
 
   // Create an image field named "Image", enabled for the 'article' content type.
   // Many of the following values will be defaulted, they're included here as an illustrative examples.
@@ -359,24 +362,27 @@ function standard_install() {
       ),
       'weight' => -1,
     ),
-
-    'display' => array(
-      'default' => array(
-        'label' => 'hidden',
-        'type' => 'image',
-        'settings' => array('image_style' => 'large', 'image_link' => ''),
-        'weight' => -1,
-      ),
-      'teaser' => array(
-        'label' => 'hidden',
-        'type' => 'image',
-        'settings' => array('image_style' => 'medium', 'image_link' => 'content'),
-        'weight' => -1,
-      ),
-    ),
   );
   field_create_instance($instance);
 
+  // Assign display settings for the 'default' and 'teaser' view modes.
+  entity_get_display('node', 'article', 'default')
+    ->setComponent($instance['field_name'], array(
+      'label' => 'hidden',
+      'type' => 'image',
+      'settings' => array('image_style' => 'large', 'image_link' => ''),
+      'weight' => -1,
+    ))
+    ->save();
+  entity_get_display('node', 'article', 'teaser')
+    ->setComponent($instance['field_name'], array(
+      'label' => 'hidden',
+      'type' => 'image',
+      'settings' => array('image_style' => 'medium', 'image_link' => 'content'),
+      'weight' => -1,
+    ))
+    ->save();
+
   // Create user picture field.
   module_load_install('user');
   user_install_picture_field();
