Is Microsoft Axing Xbox Console?
There are already leaked insider talks and rumors of how Microsoft higher-ups see of its gaming division. And it isn’t completely alienated from the yes mens I’ve seen on the internet; the idea was that with seemingly infinite budget Microsoft could muster, the entire console market is within reach. Suffice it to say, throwing money wasn’t the solution the investors nor the company wanted.
From the beginning of the previous generation, Xbox has been in the weird spot. Microsoft seemingly wanted to transition Xbox into general entertainment device. Similar tactic had been used by Nintendo back in the 80s, only that in Nintendo’s case, it was entirely a work of marketing to give the product a chance; whereas Xbox seems to have redirected its actual focus. Looking back, many of the decisions behind Xbox One were simply too impractical — aside from Kinect, which was problematic controller of its own right, it was unlikely Microsoft would be able to pull off Smart TV features globally from the get-go.
Xbox Series X and S, still a mouthful name, were even more bizarre. Xbox consoles were already losing exclusives since One, now Microsoft was openly pushing day one exclusives on PCs as well. If Xbox was fighting a war on console front in the previous generation, now it is fighting on the PC front, as if Windows will answer to their call. For majority of the gamers who are interested in the game itself, having access to the ‘killer title’ or title of interest is enough reason not to invest in another console. They can spend that money on another platform that has exclusives, such as Nintendo or Sony. It is also a telling sign Sony is releasing its exclusives on PCs only after the certain time period; majority of the gamers who want that game would actually buy the console to play it. Apply the same logic into the Xbox, no one would buy Xbox consoles, as all games would be playable on their PC from the day one.
The recent trends Xbox show on handheld, opting to build a UMPC instead of building a portable console, is even more alarming. ROG Xbox Alley is a poster child of Asus and Microsoft, and it runs Windows 11 on the device. I would assume, by definition, it is a PC. On the handheld side of the PC world, arguably Valve has more control over the market than Microsoft. Steam diligently flags whether or not a game is verified to work on its Steam Deck, Valve’s handheld, and the company is also making a push on its flavor of Linux distro, SteamOS. The decision to align Xbox consoles to PC could not have widened the battle front more.
Microsoft has already hinted the next generation console will be more PC than a console, suggesting it will run Steam client, games released on Steam, and PlayStation timed-exclusives that are now released on Steam. Again, as appealing as it sounds — being able run all manners of games on a single device — the supposed device would literally be competing against existing players in the PC world. It is a chicken and egg problem, where if next Xbox does not have enough player base, no games would be optimized to take advantage of single standardized hardware. However, if there is no games tailored for a console, no one would buy the said console over myriad of other alternatives.
As of now, Surface laptops are the only Windows hardwares Microsoft sells directly. Perhaps it is the intention of Microsoft to introduce Surface-like desktop that will sit next to a TV. Or Microsoft would have the Surface be the next hybrid laptop/desktop, much akin to Nintendo’s hybrid idea. It is not impossible to provide higher performance provided it is connected to a power source. Though unlikely, it is also possible to embrace eGPU as part of the platform. Either way, Xbox’s future, as a standalone gaming console product, seems to be outshined by other, including Microsoft’s own, products.