- Xbox ‘Project Helix’ is rumored to be a PC in a console-friendly shell.
- The next-gen Xbox would also be able to run PC storefronts like Steam and the Epic Games Store.
- Therefore, the Steam integration raises doubts about how Microsoft will be able to retain users on the Xbox Store rather than other options.
Microsoft just recently unveiled the first details for the next generation of Xbox console, codenamed ‘Project Helix’, something that the gaming giant has been working on for nearly a decade.
Project Helix is confirmed to support all Xbox and PC gamers, since the hardware will, at its core, be a Windows computer. As such, the console would also be able to run storefronts such as Steam, the Epic Games Store, and GOG.
While the prospect of different stores running on Project Helix seems nice, it could backfire for Microsoft, as it would fail to incentivize people to purchase from the Xbox Store, since Steam and other options are arguably better alternatives.
Why it matters: If Xbox fails to keep users on its platform even with such a massive shift to a PC-based console, there would be no reason for them to continue with their hardware strategy.
Division Of Profit Margins
Consoles are usually sold at break-even prices to keep the entry barrier low for customers so they can easily get into the ecosystem. The real profits are generated through software sales, like game purchases and subscription services.
Project Helix won’t really require a mandatory subscription to play online games since it is a PC at its core. This means that Microsoft’s profit would come from game sales through the Xbox Store.
Currently, Microsoft is pushing a 30% cut on all games sold through its platform, a higher standard than the industry norm. It is also the reason why the gaming giant was able to meet its growth target for the first time in nearly half a decade.
With options for other storefronts like Steam, Microsoft would most probably fail to retain users on its own platform; in that case, they won’t be able to generate profits at all.
How Could Microsoft Retain Users To Purchase From The Xbox Store
Fresh leaks suggest that Project Helix will come equipped with 32GB of RAM, which will be reduced to 24GB when in Windows mode, since Windows alone will require 8GB of system memory.
It seems Microsoft is offering users a choice between sticking with its ecosystem and opting for a regular Windows experience. The default Game Mode will be akin to the normal console experience, as found on the Xbox Series X|S consoles and, more recently, on Xbox mode on PC and the ASUS Xbox ROG handhelds.
The Windows mode will work like a normal PC and allow opening storefronts like Steam, etc., but will come at the cost of limited resources diverted to running the full OS. Don’t expect optimized games for the Windows experience, too, as they’d run better in console mode.
In such a case, most users will remain in Xbox mode for the best gaming experience and convenience for those seeking a console. This alone would push most to the Xbox mode, allowing Microsoft to incentivise profits through its own store.
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[Staff Writer]
Shaheer is currently pursuing a Business degree while also working as a part-time Content Writer. With his deep passion for both writing and video games, he has seamlessly transitioned into a role as a Journalist. Over the past two years, Shaheer has contributed as a freelancer to various websites and landed positions on acclaimed platforms like Gamerant. Currently, his role at Tech4gamers is as a Features Writer, but he also covers News occasionally. Shaheer’s favorite gaming franchises are Assassin’s Creed and the God of War series.
Get In Touch: shaheerzahid03@gmail.com
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