Microsoft CEO: Next Xbox Will Be More Like a PC
▼ Summary
– The next-gen Xbox will function as a console/PC hybrid, allowing users to exit the Xbox ecosystem and access Windows to play PC games from platforms like Steam and Battle.net.
– Microsoft CEO Satya Nadella emphasized that gaming on Windows is the company’s largest gaming business and aims to make games available on all platforms, including consoles, PC, mobile, and cloud.
– Xbox president Sarah Bond described the upcoming console as a premium, high-end curated experience, indicating it will be an expensive device with innovative features.
– Microsoft is pushing for a 30% profit margin in its gaming division, leading to layoffs, canceled projects, and price increases, which exceeds the industry average of 17-22%.
– The next-gen Xbox is expected to launch in 2027, diverging from traditional consoles by supporting cross-platform play and moving away from exclusives, as seen with Halo’s planned release on PS5.
Microsoft’s next-generation Xbox appears poised to blur traditional boundaries between console and computer, with CEO Satya Nadella strongly indicating the device will function more like a personal computer than previous iterations. This strategic shift could fundamentally change how players access and experience games across platforms.
Recent reports suggest the upcoming Xbox will operate as a console-PC hybrid, granting users unprecedented access to gaming marketplaces beyond Microsoft’s ecosystem. This means players could potentially enjoy PlayStation titles available on Steam, including major releases like God of War, Spider-Man, and Ghost of Tsushima, directly through their Xbox hardware. According to Windows Central, while users can remain within the standard Xbox interface, they’ll also have the option to switch to a full Windows desktop environment, opening doors to PC-exclusive platforms like Battle.net and Riot Games launcher.
During a recent interview, Nadella elaborated on Microsoft’s gaming philosophy, emphasizing the company’s commitment to platform-agnostic accessibility. “The biggest gaming business is the Windows business,” Nadella stated, highlighting Steam’s successful marketplace built upon Microsoft’s operating system. He noted that following the Activision acquisition, Microsoft has become the industry’s largest publisher and aims to ensure games reach players “everywhere, in every platform.”
Nadella challenged conventional distinctions between consoles and PCs, explaining that Microsoft originally developed Xbox consoles as “better PCs” optimized for gaming. He expressed enthusiasm about revisiting this concept with the next hardware generation while maintaining that consoles deliver “unparalleled” performance experiences.
These developments align with previous statements from Xbox president Sarah Bond, who described the forthcoming console as a “very premium, very high-end curated experience.” Bond pointed to recently released handheld devices like the ASUS ROG Xbox Ally X as indicators of Microsoft’s direction, though she stopped short of revealing complete details about the upcoming system.
Microsoft has confirmed its partnership with AMD to develop the next-generation hardware, promising “next-level performance, cutting-edge graphics, breakthrough gameplay, and unmatched compatibility” with existing Xbox game libraries. Bond previously emphasized creating “a gaming platform that’s always with you,” not limited to specific stores or devices, explaining the close collaboration with Windows teams to establish Microsoft’s operating system as the premier gaming platform.
The strategic shift comes amid significant internal changes at Microsoft’s gaming division. Recent reports indicate the company has implemented a 30% profit margin target for Xbox studios, substantially higher than the industry average of 17-22%. This financial objective has reportedly contributed to widespread layoffs, project cancellations including Rare’s Everwild and The Initiative’s Perfect Dark, and controversial pricing adjustments for both hardware and subscription services.
Nadella addressed the business model considerations, stating that strong margins enable continued innovation in an increasingly competitive entertainment landscape. “Gaming’s competition is not other gaming,” he observed. “Gaming’s competition is short form video.”
Microsoft’s multiplatform approach represents a dramatic departure from traditional console exclusivity. The company recently announced Halo: Campaign Evolved for PlayStation 5, with Bond describing game exclusivity as “antiquated for most people.” This philosophical shift positions the next Xbox generation as potentially the most open console platform yet, while Sony’s anticipated PS6 is expected to maintain a more traditional approach with platform-exclusive titles.
Industry observers anticipate both Microsoft and Sony will launch their next-generation consoles around 2027, setting the stage for another competitive cycle with fundamentally different hardware philosophies.
(Source: IGN)
