- Microsoft is moving away from traditional gaming consoles due to declining sales since the Xbox One era.
- Microsoft could also unveil a new controller or launch an OEM Xbox-branded PC before the end of 2026.
- The next device is expected to run a lighter version of Windows 11, known as the Full Screen Experience (FSE), which saves on memory.
When Microsoft debuted its original Xbox console in 2001, it stood out from Sony and Nintendo’s offerings and was seen as a competitor because of its unique games. This trend continued with the Xbox 360, which outsold the PS3 while simultaneously providing superior gaming performance than Sony.
However, things took a turn for the worse for Microsoft beginning with the Xbox One, and with the Xbox Series X/S, sales were so poor that the firm changed its strategy.
Just as we saw with the ASUS ROG Xbox Ally a few months ago, Microsoft intends to release a forthcoming Xbox Next console that will effectively be a desktop PC running Windows 11 FSE in 2026. Also, Microsoft will release new hardware devices instead of launching consoles years apart.
According to the most recent claims from Jez Corden of Windows Central, the Xbox Next could run Windows 11 FSE, the streamlined version already used in the ASUS ROG Xbox Ally, which requires 2 GB less RAM.
This would make it more of a PC than a console, because while the hardware of the current models is already extremely comparable to that of a computer, the operating system makes it hard to say it’s a device operating in a closed ecosystem.
Everything indicates that Microsoft intends to offer an experience similar to Valve’s Steam Machine, only the Xbox will be far more powerful. The interface for this future device will be based on the Xbox Full Screen Experience (FSE) app and will appeal to both PC and console gamers. The goal is to have access to game retailers such as the Microsoft/Xbox Store, Epic Games Store, and, of course, Steam.
Regarding its hardware, we’ve previously seen that it will be made by AMD, and this time it will be more expensive, so if you were hoping to save money on a console, this may not be the greatest option.
Last year, Microsoft and ASUS collaborated to release the ASUS ROG Xbox Ally, the first of the future consoles they promised. Of course, it is not a console in the classic sense, but rather a computer designed to function as a portable console, similar to the Steam Deck.
In the end, it resembled a ROG Ally X, with a more ergonomic shape and a modified Windows 11. The ASUS ROG Xbox Ally will not be the only one of these “consoles,” as it is rumored that Microsoft will unveil either a new Xbox controller or an OEM Xbox PC by the end of 2026.
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[Editor-in-Chief]
Sajjad Hussain is the Founder and Editor-in-Chief of Tech4Gamers.com. Apart from the Tech and Gaming scene, Sajjad is a Seasonal banker who has delivered multi-million dollar projects as an IT Project Manager and works as a freelancer to provide professional services to corporate giants and emerging startups in the IT space.
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