Xbox’s PC-Console Is a Gamble That Might Just Work

The rumour is that Xbox’s next console will be a PC in a “TV-friendly shell”.  It’s a gamble, and one that probably won’t pay off in any kind of big way. The good news is that Microsoft probably don’t expect it to, so everything will be built with that in mind.

It’s been a long-standing rumour, now stood up by Jez Corden. It’s an interesting idea, but one that fans will be more excited by than the general public.

The idea that tens of millions of people are just waiting for a PC with a console OS just isn’t true. In the first instance because that’s effectively what a modern console is anyway. And in the second instance because it isn’t going to have a PlayStation logo when it boots up. There’s a lot to be said for open ecosystems, and there’s no reason that’s necessarily what the Xbox-PC will be. It’s a nice thought: playing God of War through Steam on your Xbox. It feels like there will be more than a few barriers to that.

So then what are the benefits to this plan? The most obvious is for Microsoft. Removing the Xbox of it all is clever. Both major consoles are effectively PCs, and yet they need specific time and effort put into them. Having a set specification to work towards while still just being a PC might help developers, and make releases to “Xbox” automatic. Especially if they can work out the Steam thing.

The Steam thing. That’s a hard one. Steam is the de facto monopoly in the PC space. People not only use it the most, they actively and aggressively stick to it. Nobody else stands a chance. Perhaps Microsoft sees their next console as a guarantee of tens of millions of new PC users for their store. That’s naïve.

Breaking Console Barriers

Some Xbox fans will move to PlayStation. There’s no reason not to. You’ll be able to play PS6 games, you’ll be able to play Xbox games. Why not?

Others will move to more traditional PCs, or have already made that leap. And while I say “the move to PC”, what I actually mean is the move to Steam. There are few people using any other store exclusively.

And finally, there’s a large group for whom the current consoles are good enough. If you play Fortnite, if you play Call of Duty, if you play an occasional story game, the PS5 and Xbox Series devices will last you for many more years to come. The proposal of better 4k in isolation is not an attractive one.

So there may be a number of behind-the-scenes benefits to making the Xbox a PC in disguise, but without the support of third party stores the benefits to the player might not be instantly apparent.

But at this point perhaps it’s managed decline. After all, we know that console space is shrinking. We know the Switch 2 will do decently. We know Grand Theft Auto 6 will provide a much needed boost. Long term this isn’t enough to support the slice of industry that depends on it. A cool PC, with features that transfer across to the PCs that we already own, seems like a clever transitional move. Those that want it can buy it, but don’t expect much of a discount. I can’t see Microsoft losing money on this thing, like they have on consoles in the past.

Either way, it’s something new. And if there’s one thing this industry needs more than anything right now, it’s something new. Something risky. And while some will laugh at the idea, the PC-console doesn’t need to outsell the next PlayStation. If it makes things easier for developers and offers some interesting new ideas in the space, perhaps that is enough.