Microsoft is preparing a major shift in its Xbox strategy, turning its next-generation console into a Windows-based gaming machine that will function more like a PC than any Xbox system before it.
A Console/PC Hybrid
The upcoming Xbox will run full Windows, layered with a TV-friendly interface that mirrors the current Xbox dashboard. Users will be able to navigate a console-style experience out of the box. However, for those who want more control, the system will also allow access to the full Windows desktop. This means players could download and run other game platforms like Steam, Epic Games Store, Battle.net, or even software such as Microsoft Office or Adobe apps.
This dual-mode approach has already been partially rolled out through the Xbox Ally, a handheld gaming device developed by ASUS in partnership with Microsoft. The Ally, and its newer version the Ally X, are being used to gather public feedback on the experience, which Microsoft intends to refine for its next generation of Xbox hardware.
Backward Compatibility
The new Xbox will still support the existing library of Xbox games. Titles from the original Xbox, Xbox 360, Xbox One, and Xbox Series X|S will continue to run on the upcoming console. These games will launch through the Xbox app, and new hardware features like AI-based resolution boosting and frame generation will enhance them further.
At the same time, Microsoft plans to allow games designed for Windows, regardless of platform, to run natively on the new device. This could include titles like God of War or Spider-Man, which are available on PC through Steam, as well as games from independent launchers such as Riot’s or Blizzard’s.
Game Pass and Pricing
A key internal discussion at Microsoft revolves around Xbox Game Pass and whether the current structure makes sense for a hybrid device. Today, PC Game Pass provides access to the same first-party games as Xbox Game Pass Ultimate, but at a lower price.
Microsoft has not finalized its decision, but sources say the company is considering removing the paid multiplayer requirement from the next Xbox, aligning it with how online play works on PC. It also appears likely that the branding and pricing of Game Pass will change in response to the platform merger between console and PC.
On pricing, Xbox President Sarah Bond recently described the upcoming console as a “premium” product. While it may cost more than past Xbox consoles, or even more than the PlayStation 6, it is expected to be significantly cheaper than buying an equivalent gaming PC. Microsoft will save on Windows licensing and use its long-term hardware partnerships to reduce production costs.
Release Date?
Microsoft is aiming to release the new Xbox in 2027, according to internal timelines.
There are still issues to address. The current Xbox app on Windows struggles with responsiveness, and the user experience remains inconsistent compared to Steam or dedicated consoles. Microsoft’s challenge will be to resolve these gaps before launch and offer a product that appeals to console players and PC gamers alike.
