Microsoft’s Xbox brand, traditionally known as a game console, is undergoing a transformation to become a multi-device gaming platform. Recent marketing campaigns emphasize Xbox’s presence not only on consoles but also across phones, laptops, TVs, handheld PCs, and VR headsets.
Despite this push, the perception of Xbox as just a console remains a challenge. The newly launched ROG Xbox Ally handheld devices have sparked some confusion, as they do not natively run Xbox games but rely on cloud streaming or connection to an Xbox console. Microsoft aims to leverage cloud gaming but faces skepticism regarding its practicality on hardware capable of offline play.
Xbox president Sarah Bond highlighted that Microsoft’s next console will not be limited to a single store, embracing a Windows-like openness. This aligns with Microsoft’s ambition to make Windows the leading platform for gaming. The Xbox app on Windows, now being rebranded as “Xbox PC,” aims to compete with Steam, though inconsistency in naming may cause confusion.
Collaboration with AMD is central to this strategy. AMD CEO Lisa Su revealed plans to co-engineer gaming-optimized chips for consoles, handheld devices, PCs, and the cloud. These chips are expected to support backward compatibility and could power both Microsoft’s and third-party Xbox-branded hardware.
This vision extends Microsoft’s earlier attempts dating back to the “Live Anywhere” initiative in 2006, which sought to unify Xbox and Windows gaming but ultimately failed. Today, Microsoft adopts a more open approach, allowing rival stores and OEMs to participate, aiming to attract users away from Steam and increase direct game and subscription sales.
However, the effort faces high stakes. Microsoft is preparing major layoffs affecting Xbox studios, including possible cuts at Turn 10, developers of Forza Motorsport.
Other Microsoft developments include:
- Windows is replacing its Blue Screen of Death with a Black Screen of Death in Windows 11.
- Extended Security Updates for Windows 10 are now free with the condition of enabling Windows Backup, constrained by OneDrive’s 5GB free storage limit.
- Discord is developing a native Windows on Arm app to improve performance on ARM-based PCs.
- The Xbox-branded Meta Quest VR headset launched at $399, featuring cloud gaming support through Xbox Game Pass.
- Windows 11 is testing new customization features for hardware indicator pop-ups and adding a Recall homepage.
- Microsoft introduced Mu, a new on-device language model powering AI features in Windows 11 Settings.
- Xbox’s Home UI update enables pinning apps and games and enhanced customization for a streamlined user experience.
- Microsoft is testing a unified game launcher in the Xbox PC app that will aggregate libraries, including Steam games.
- Microsoft’s Family Safety feature recently encountered issues blocking Google Chrome, with a workaround now available.
- Bill Gates and Linus Torvalds met for the first time at a private event, marking a notable meeting between pioneers of Windows and Linux.
- Microsoft 365 Copilot faces competition from OpenAI’s ChatGPT, affecting its business adoption.
- To improve security, Microsoft is moving antivirus and endpoint detection components out of the Windows kernel, working with vendors to ensure stability.
These initiatives highlight Microsoft’s broad strategy to evolve Xbox and Windows gaming ecosystems amid growing industry competition and technological shifts.