Xbox Reportedly Expects No Growth In Hardware Moving Forward

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Story Highlight
  • A leaker states Xbox does not expect much growth in its hardware department.
  • The future lies in a Steam-like ecosystem for Xbox.
  • Future Xbox consoles could be similar to what the Steam Deck is to Valve’s overall business.

Xbox’s plans for the future are already in motion. The gaming giant has ambitions to become a major publisher, grow Game Pass as a platform, and release a new console that marks the biggest leap in a generation.

However, these plans seem to be going against Microsoft’s internal ambitions. According to new reports, Xbox seems to have lost faith in its hardware division.

Why it matters: This approach clearly defines Xbox as only emphasizing software development, with the hardware already being sidelined.

Xbox Series X
The Xbox Series X Was Designed With The Hopes of Overtaking Sony’s PS5

As mentioned on Resetera, a known insider points to a Steam-like future for Xbox. He even believes the storefront will be natively useable on the next console.

According to the information, Microsoft’s hardware will become a niche product moving forward, appealing only to the most hardcore fans. Xbox will then attempt to profit based on an affordable ecosystem that offers frequent discounts and mass appeal for developers.

This would put Xbox consoles in a similar scenario as the Steam Deck. While this handheld has been a major success for Valve, the storefront eclipses everything the company has achieved regarding hardware.

According to the insider, the biggest reason for this approach is Xbox’s multiplatform push. Every IP is seemingly up for a third-party release, which could leave Microsoft with no pillar franchises in the future.

This could mean Forza, Gears, and even Halo will eventually be on rival platforms.

Xbox Handheld
Xbox Is Rumored To Be Working On A Handheld

Microsoft is struggling to sell systems like the Xbox Series S|X despite their many strengths. While it might be odd to think that Xbox hardware has completely plateaued, Microsoft reported losses on hardware this quarter and expects similar results in the next.

Therefore, there is validity to the insider’s information. Still, taking the information with a grain of salt may be best till more information comes out.

Reports also claim that a handheld is being developed by Xbox. This may lead to an interesting scenario, but we don’t think it will help Microsoft find the core audience it has been looking for.

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