In the ever-evolving landscape of gaming, few brands have sparked as much speculation and as many headlines as Xbox. Over the past few years, Microsoft’s gaming division has weathered persistent rumours, fluctuating market confidence, and bold declarations from industry pundits proclaiming “The End of Xbox.” But beneath the noise, a quieter transformation has been unfolding.
Microsoft isn’t walking away from hardware. It’s rewriting the rules.
If recent executive statements and insider reports are to be believed, the next generation of Xbox won’t be a traditional console at all. Instead, it’s shaping up to be a strategic pivot: a premium, high-end PC-hybrid device that blends the plug-and-play simplicity of a console with the flexibility and power of a Windows gaming rig. This isn’t just a new product, it’s a redefinition of what Xbox means in a post-console era
The ROG Ally: The Next-Gen Beta
The blueprint for Xbox’s future isn’t theoretical, it’s already in players’ hands. Enter the ASUS ROG Ally, a handheld Windows gaming device co-developed with Xbox in mind. Xbox President Sarah Bond has described the next-generation console as a “very premium, very high-end, curated experience,” noting that users are “starting to see some of the thinking that we have in this handheld.”
That thinking is bold. The Xbox and Windows teams collaborated to create a full-screen Xbox experience layered over Windows, a streamlined, console-style interface designed to boot directly into gaming mode. It’s a solution to a long-standing PC pain point: the fragmented, often clunky onboarding process. Instead, the Ally offers a hybrid approach, full Windows freedom beneath a sleek, controller-friendly shell optimised for TVs and living room setups.
I had a chance to try the Xbox Ally X firsthand at PAX Aus. The build felt solid, the weight balanced, and as someone familiar with Xbox controllers, the layout was instantly intuitive. My 20-minute session didn’t push the hardware to its limits, nor did it fully immerse me in the Windows/Xbox hybrid environment. But it was enough to spark curiosity.
Since then, I’ve been digging into reviews and impressions from across the community. The consensus? The concept is compelling, and the full-screen Xbox mode, essentially a curated Windows shell, is a welcome step forward. But the execution, especially on the non-X model, still feels like a beta. Promising, yes. Polished? Not quite yet.
Fusing PC and Console Gaming
The rumored design for the next Xbox marks a radical departure from the traditional console playbook. Microsoft appears to be dismantling the walled-garden model in favour of something far more open and far more ambitious.
Open Ecosystem
At the heart of this shift is Windows. The next-gen Xbox is expected to run a full version of the OS, allowing users to exit the Xbox interface entirely and access the desktop environment. That means players could install games from any storefront, like Steam, Epic Games, or GOG, without restriction. It’s a console that behaves like a PC, without losing its console soul.
The Universal Library
This hybrid approach could make the next Xbox the most versatile gaming device on the market. Not only would it support the vast catalogue of PC-exclusive titles, but it could also open the door to PlayStation games ported to PC, think God of War, Spider-Man, and Horizon Zero Dawn. It’s not just about Xbox anymore; it’s about everything.
A New Standard
Phil Spencer, Head of Microsoft Gaming, has hinted at a broader vision: “connecting all your devices in one place.” That suggests a multi-tiered strategy, one flagship Xbox device from Microsoft, and a wave of third-party hardware from partners like ASUS, each offering different specs, form factors, and price points. The console becomes a platform, not a box.
A Premium Experience Comes with a Premium Price
Microsoft’s strategic pivot isn’t just a technical evolution; it’s a redefinition of Xbox’s place in the market. And with that shift comes a new price reality.
Historically, consoles have been sold at a loss or break-even, with profits recouped through game sales and subscriptions like Game Pass. That model works when the hardware is locked into a proprietary ecosystem. But a full-fledged Windows device? That’s a different story. Users could buy the hardware, install Steam or Epic, and never engage with the Xbox storefront again.
Sarah Bond’s repeated emphasis on a “premium” and “very high-end” experience has been widely interpreted as a signal: this won’t be a budget-friendly box. Early speculation places the price point near or above the ROG Ally X’s $999.99 USD ($1,599 AUD), positioning the new Xbox as a direct competitor to mid-to-high-end gaming PCs.
This isn’t a console for everyone. It’s a device aimed squarely at enthusiasts; gamers who prioritise power, flexibility, and ecosystem freedom over mass-market affordability.
The Road Ahead
Microsoft’s pivot to a PC-hybrid model is more than a product shift, it’s a philosophical gamble. By leaning into its “Everything is an Xbox” vision, the company is pushing toward a unified platform that spans consoles, PCs, cloud streaming, and handhelds. It’s a bold attempt to dissolve the boundaries between device categories and redefine what it means to be part of the Xbox ecosystem.
But ambition alone isn’t enough. For this strategy to succeed, Microsoft must deliver a seamless, reliable, and genuinely console-like experience from the moment the device powers on. Tying the future of Xbox so closely to Windows introduces complexity… and risk. The challenge is to make that complexity invisible to the player.
Still, I’m hopeful. My hands-on time with the Ally X at PAX Aus gave me a glimpse of what’s possible. The Xbox full-screen environment felt intuitive, and the hardware showed real promise. It wasn’t perfect, but it hinted at a future where Xbox isn’t a box, it’s a layer, a mindset, a gateway to play anywhere.
And if that vision holds, then maybe, just maybe, everything really can be an Xbox.
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