Can the Next Xbox Turn Things Around for Microsoft?

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In the past, I’ve been quite critical towards Microsoft, especially concerning their management of Xbox. They’ve had underwhelming game releases, some high-profile flops, the debacle with Redfall, and the closure of Tango Gameworks (which fortunately found a new home). There’s quite a list. However, when they announced they would release their exclusive games on other platforms, I didn’t instinctively dislike this move. Of course, there’s always the competition between consoles, but if it means more people can enjoy fantastic games like Sea of Thieves and Hi-Fi Rush, then why not?

The outcome of that decision proved quite favorable, as Forza Horizon 5 and Indiana Jones and the Great Circle emerged as top sellers on the PlayStation Store. Furthermore, partnering with Asus for the ROG Xbox Ally was another strategic move. There were whispers about an Xbox handheld for some time, and considering the evolution of the portable PC market, such a decision wouldn’t have been unexpected. However, I harbored doubts due to steady console sales and Microsoft’s lack of experience in this area. The ROG Xbox Ally offers a balanced option, delivering a quality handheld device for enjoying Game Pass titles and accessing platforms like Steam. Despite the rumored prices – $499 for a regular Ally, $799 for the Ally X – being somewhat steep, they aren’t the most budget-friendly options.

Subsequently, Microsoft and AMD revealed their prolonged business alliance. Typically, such news wouldn’t merit a video message from the president of Xbox, Sarah Bond, but this time it did. The reason being that she disclosed that this extended partnership would involve AMD collaborating with Microsoft in developing silicon for a range of devices, including our upcoming Xbox consoles, both for your living room and mobile use.

Here’s a more casual and simplified rephrasing: They’re hyping up their new gaming tech as the future of graphics, promising it will work with your current Xbox games. However, the mention of “immersive gameplay and player experiences boosted by AI” makes me a bit uneasy. If you haven’t experienced an AI-generated game using Copilot, count yourself fortunate (or blink rapidly if you want to see double).

As a passionate gamer, I can’t help but be thrilled by Bond’s final declaration: “We’re striving to create a gaming platform that travels with you, allowing you to enjoy your games seamlessly across various devices, anytime, anywhere. Our mission is to provide an Xbox experience tailored for players, not confined to a specific store or tied to a single device.” Clearly, Xbox is collaborating closely with the Windows team to make our platform the ultimate gaming destination, and the future generations of Xbox are taking shape right before our eyes!

Several questions come to mind, but let’s start with the most obvious: Why? Why more Xbox consoles?

It might seem controversial, but Microsoft’s own data shows that Activision Blizzard King is driving the Gaming division. Contrary to popular belief, Xbox hardware sales haven’t remained constant; instead, their revenue has decreased compared to previous years. Even before global price increases, there was little interest among consumers in purchasing an Xbox Series X or S.

In essence, it’s understandable for people to feel this way, given the versatility Microsoft has been promoting with Xbox. They haven’t labeled their brand as “poison,” but they have certainly made everyone question what an Xbox truly is – a Smart TV, a PC, a Steam Deck (if you use Xbox Cloud Gaming through Microsoft Edge), or even a PlayStation 5, despite the limited number of compatible titles. However, it seems that Microsoft continues to introduce new consoles, which may not perform exceptionally well in sales.

It’s understandable for fans to get excited about the news – there was some criticism towards Microsoft for seemingly leaving Xbox behind by making its exclusives available on other platforms. Yet, the announcement of a new-generation console doesn’t mean that it will immediately abandon its partnerships with third parties. After experiencing extra income from other platforms, which helps compensate for the lack of hardware revenue and costly Game Pass agreements, it’s unlikely they’ll suddenly slow down this strategy.

Microsoft has consistently maintained its commitment to the console industry, and there were strong indications that a new Xbox console was on the horizon (even if the leaked court documents with the US Federal Trade Commission didn’t convince everyone). However, due to significant shifts over the past year, it seemed as though Microsoft might deviate from this pattern.

As a gamer, I’m not so sure it’s just a matter of whipping up another console and crossing my fingers for success. When Bond hinted at a next-gen console in our living rooms, he also suggested it could be “in your hands,” which leads me to believe that Microsoft might still be working on their own handheld device, despite the whispers. The way they’re diving into multiple marketplaces and allowing cross-device gaming experiences points towards something more than just a portable PC version.

It’s plausible that Microsoft might be working on a new Xbox model that seamlessly integrates Windows, creating an experience that blends console gaming and PC functionality. This device would be versatile enough to work with your living room TV as well as for portable use. While it may resemble the Nintendo Switch, it’s important to note that the Steam Deck can transform into a full-fledged PC when connected to a monitor, mouse, and keyboard. It seems Microsoft aims to develop an all-encompassing device that caters to various gaming preferences. Additionally, if Microsoft manages to grant access to a player’s Steam library on this device, it could potentially become even more appealing, especially with the added attraction of first-party titles launching simultaneously with other platforms.

Absolutely, given that the ROG Xbox Ally still exists, any potential new platform would need to provide something extra to make it stand out and boost hardware sales. It should offer something unique to differentiate itself, as I find it unlikely that Microsoft would emphasize its AMD partnership so much if it were simply creating another screen for their “This is an Xbox” campaign.

Another interpretation could be: The ROG Xbox Ally might serve as an experimental venture for the company, testing the waters in the portable PC market. If it receives positive feedback, they may choose to delve further into this area with a dedicated product. Alternatively, if it doesn’t fare well, they can always revert back to their traditional console model, as I am confident that they will continue to innovate and break away from conventional norms.

Given the whispers about PlayStation’s upcoming console adopting a handheld design as well, Microsoft might be privy to some unspoken facts about the market. It seems that the demand for portable gaming with a PC-like environment could be far greater than what we perceive (as PC Game Pass subscriptions surged by more than 30% in Q2 this year). If Sony were to carve out a niche in the handheld console market, Microsoft might choose not to contest but rather strengthen its position on the PC front. The House of M (Microsoft) has been leading the PC gaming sector, and if it can provide an economical gaming solution that caters to all spaces – living room, mobile, and desktop – it could uncover a pathway to victory that no other has explored before.

Indeed, games continue to hold significance, yet Microsoft has consistently delivered on the gaming front over time. After enduring periods of scarcity with fewer releases, they are now capable of launching several successful titles consecutively. The next challenge is to develop an exceptional platform that enthusiasts would be willing to pay for, in order to enjoy these games.

* This article reflects the personal opinions of its author. They may not align with the general perspective or stance of GamingBolt as a whole.

The revised version is intended to convey the same meaning while sounding more natural and easier to read, maintaining clarity and accuracy.

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2025-06-25 18:13