Microsoft’s ambitious new Xbox: Your entire Xbox console library, the full power of Windows PC gaming, and no multiplayer paywall

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Xbox is dead, long live Xbox! As the saying goes.

Xbox has been predicted to fail more often than any other gaming system, but it continues to exist. However, Microsoft is largely responsible for this reputation, if you ignore the sensationalized headlines.

Microsoft hasn’t been winning fans lately with its quick changes in plans, significant layoffs, and price increases. The announcement that Halo would be available on PlayStation – a move many predicted for over a year – sparked another round of predictions about the Xbox’s failure. However, there’s still reason to be hopeful about the future of Xbox, even if it doesn’t have exclusive games.

Japanese game developers are increasingly supporting the Xbox platform. More and more developers are also using Xbox Play Anywhere, which lets players continue games across consoles and PCs. The Xbox handheld gaming device, the Ally X, is currently sold out in many regions. Xbox is expanding to include PC, cloud, and console gaming, but this has led to speculation about the design and features of the next generation of Xbox consoles.

We’re beginning to get a clear picture of what the next Xbox will be like, based on what’s been said publicly and information we’ve gathered. Here’s a rundown of what you can expect in the years to come.

What we know: The next-gen Xbox from Microsoft will be a curated Windows gaming PC, complete with your full native console library

For years, Phil Spencer, the head of Xbox, has hinted at what the future holds for the console. Everyone’s been curious to see how his vision would actually take shape. Just last week, he suggested the Xbox handheld, the Ally, offers a good clue. I’ve spoken with some reliable sources over the weekend, and they’ve given me a better understanding of what he meant by that.

As expected, the next Xbox will run on a full version of Windows, but designed for TVs and with a console-like user experience. Instead of creating its own handheld gaming device right away, Microsoft is working with ASUS on the Xbox Ally to test out ideas that will influence its future consoles. Sources say Microsoft still intends to develop its own handheld eventually, following this new approach. Sarah Bond, President of Xbox, has hinted at new Xbox hardware being created with AMD. The big question now is: what will all of this ultimately look like?

We are actively planning for future products. We’re currently developing new hardware and working through the prototyping and design phases. We’ve also partnered with AMD to help bring these products to life.

Xbox President, Sarah Bond

The Xbox Ally and Ally X, featuring the Xbox Full Screen Experience, gives us a strong idea of what the next Xbox console will be like. Like SteamOS and its Big Picture Mode, it lets you switch to a full Linux environment whenever you want. The Xbox Full Screen Experience will do the same, allowing you to use the full Windows operating system and access other game stores like Steam, the Epic Games Store, Battle.net, and the Riot Client – or any other application you prefer. You could even use programs like Adobe Creative Cloud or Microsoft Office on the next Xbox if you choose.

The Xbox console will be designed to feel familiar to existing Xbox players right from the start. The initial setup will be similar to today’s consoles, and you can choose to stay within the Xbox environment without ever using Windows. You’ll only need to switch to Windows if you want to play games not normally available on Xbox, such as PlayStation games on Steam, games best played with a mouse and keyboard like League of Legends, or older titles from platforms like GOG.

The next Xbox will let you play popular PlayStation games like God of War, Ghost of Tsushima, and Spider-Man, which you’ll buy through Steam or the Epic Games Store. It will also support World of Warcraft through Battle.net. Plus, you’ll be able to install almost any game that works on Windows, giving you access to a huge library of games – both new and old – all in one place.

As an analyst, I’m seeing a real push from Microsoft to finally deliver on the original vision for Xbox – bringing a full Windows experience to the TV. Teams across both the Xbox and Windows divisions are heavily focused on optimizing the platform for big screens and controller use, something they’ve been working towards for over 25 years. It feels like they’re really determined to make that initial ‘Windows in the living room’ concept a reality.

The new Xbox will be powered by updated AMD technology, which has been approved by Microsoft’s top executives, including CFO Amy Hood and CEO Satya Nadella. This ensures it can play all existing Xbox games – from the original Xbox, Xbox 360, Xbox One, and the current Xbox Series X|S library, as well as any future releases. All games will run directly on the new console and launch easily through the Xbox library.

As with previous console generations, game developers will likely continue to create and update games for the Xbox Series X|S for several years after the release of the new Xbox. Eventually, more games will be specifically designed for the new hardware. Technologies like Auto Super Resolution and advanced frame generation will improve the performance of Xbox Series X|S games on the new console, and developers can also create games that work seamlessly across all Xbox platforms using Xbox Play Anywhere and Smart Delivery.

Microsoft is creating new technology and pairing it with specialized hardware to make PC gaming smoother and more reliable. This should solve common problems like long shader compilation times, especially on the new Xbox. They’re also finding ways to improve Windows itself, which will benefit all PC gamers, regardless of whether they play on Xbox or not.

Speculation: What happens to Xbox Game Pass and PC Game Pass in this scenario? How much will all this cost?

Microsoft is still figuring out the future of Xbox Game Pass. Currently, the PC version includes all new Xbox games, like Call of Duty, at a lower price than the console version. If the next Xbox is more like a PC, will players be expected to use the cheaper PC Game Pass instead of the more expensive Xbox Game Pass Ultimate?

I’ve heard the latest plan is to offer multiplayer gaming on the next Xbox without requiring a subscription. Making players pay for online access on a PC wouldn’t be smart, especially since it could drive them to Steam instead of using the Xbox platform. However, it’s still uncertain whether this plan will actually happen.

It seems likely that PC Game Pass will be changed or discontinued. The Xbox Game Pass website is already downplaying it, listing it below the main subscription options. This makes sense, as the Standard and Premium Xbox Game Pass plans now include PC games. Having a separate Game Pass for each device doesn’t really fit with Microsoft’s goal of uniting Xbox consoles and PCs, but we’ll need to wait and see what happens.

But what about how much it will cost? Xbox President Sarah Bond recently suggested the next Xbox will be a high-end product, which probably means it will be more expensive than previous models.

The next Xbox is expected to be more affordable than a gaming PC with similar capabilities. This is because Microsoft benefits from cost savings through large-scale manufacturing and deals with companies like AMD, and doesn’t have to pay licensing fees for Windows. Microsoft’s investment in the Xbox platform also helps lower the overall cost. Even though the Xbox is becoming more open, most players will likely continue to buy games and stay within the Xbox system.

As a researcher tracking gaming platforms, I’ve noticed a clear trend: many of the most popular games on Xbox – think titles like Fortnite, Roblox, and Minecraft – aren’t available on Steam, and it doesn’t look like that will change anytime soon. Looking ahead, I anticipate we’ll see more games from Battle.net, such as World of Warcraft, coming directly to Xbox. Interestingly, even though Diablo and Overwatch *are* available on Steam, the overwhelming majority of players on PC still choose to use Battle.net to play them.

Microsoft is offering developers a significantly lower commission rate on its PC store – just 12% – compared to Steam’s 30%. This favorable rate will continue for games made for the Xbox PC platform, encouraging publishers to offer their games there and foster competition. However, this move will probably mean Microsoft has less money available to subsidize its own hardware.

While the next Xbox will likely cost more than the PlayStation 6, it could still be the best and most affordable way for new players to get into PC gaming. Several other things could even bring the price down further.

Analysis: A risky strategy with a huge potential payoff if executed well

Think of the Xbox Ally as a preview of what the next Xbox will be like. When you connect the Xbox Ally X to your TV with the Z2 Extreme, you’re essentially helping to test the features and experience of the future Xbox console.

One area where the Xbox handheld falls short, especially for those used to Xbox consoles, is its limited access to Xbox console games. While there are more and more ‘Play Anywhere’ games that work on both PC and Xbox, most major game publishers haven’t fully embraced this system yet. However, this is likely to change, as publishers could earn a larger share of revenue – 88% instead of 70% – by supporting PC gaming. It’s even possible that PlayStation will create its own PC app and release it on the next Xbox, allowing them to keep all the profits instead of sharing with Steam or Epic Games.

Ultimately, how well things *work* is the most important factor, and the Xbox Ally doesn’t always deliver a smooth experience. Issues like annoying pop-ups, the appearance of old Windows Phone games, and a lack of features for players and developers continue to be significant hurdles for the Xbox PC platform. While Microsoft has made considerable improvements since focusing more on this area, it’s uncertain how quickly they can simplify the complex Windows system to create a user-friendly experience for TV-based gaming.

The Xbox app on the handheld Ally still feels a bit slow at times, and switching between apps isn’t always smooth. However, the next generation of Xbox isn’t rushed, and current expectations point to a release in 2027. When the new hardware arrives, it needs to be completely polished and reliable – there are still a lot of issues to work out.

This is a new venture for any company, as Valve is developing a gaming experience powered by Steam OS that aims to play games from both PlayStation and Xbox on one device. Xbox currently has an edge with popular games like Minecraft, Fortnite, and Roblox, and its strong anti-cheat technology – which can still present challenges for competitive games on Steam OS. However, Valve could potentially address these advantages over time.

The next Xbox aims to have the largest game library ever, offering both exclusive titles and complete access to games from all PC stores and launchers.

Many questions remain, but we’ll likely have more answers as time goes on. A key question is whether people will actually enjoy this new type of gaming experience. It also needs to be user-friendly for console gamers who expect things to just work, and affordable despite being a high-end product. Without games you can’t get anywhere else, will people feel like they’re missing out on something, even though it’s an open system? And beyond Microsoft’s own Xbox, will other companies like ASUS or Razer create their own versions – perhaps more affordable options, or even ultra-high-end ones?

While details about the next generation of Xbox are still emerging, there’s plenty to be excited about for Xbox console players. A preview showcase is planned for November, and it’s expected to highlight Xbox Play Anywhere, with most or all featured games supporting the feature. Plus, a new Xbox Elite Controller Series 3 is on the way. We could also see new “Xbox PC” devices from ASUS next year – these would be designed to connect to your TV instead of being handheld controllers. There are likely even more surprises in store!

Microsoft is completely changing its approach with its future plans, and I’m really looking forward to seeing what they come up with.

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2025-10-27 16:43