Xbox as a Gaming PC? Windows 11 & Dedicated Console Layer Revealed

The first serious information around the next console Xbox are beginning to outline a fairly radical trajectory for Microsoft. According to several reports relayed by Windows Central, the 10th generation Xbox would no longer be thought of as a traditional console in the strict sense, but rather as a gaming PC running Windows 11, dressed with an interface and a software overlay capable of recreating the console experience. A development which, if confirmed, would mark a major turning point: Microsoft would no longer only seek to compete with Sony on the classic terrain of closed consoles, but to definitively merge the Xbox universe with that of the PC.

The central idea would be simple: the machine would technically work under Windows 11, but with a deeply integrated Xbox interface, designed for living room use, controller in hand, on television, without the usual friction of the PC world. Microsoft would thus work on a lighter and optimized version of Windows, rid of unnecessary processes, in order to concentrate resources on video games, stability and fluidity. An approach that is directly reminiscent of what we already observe on hybrid devices like the ASUS ROG Ally, capable of switching between a simplified gaming interface and a classic Windows desktop.

An Xbox that could access Steam, Epic Games Store and all PC stores

This paradigm shift immediately opens up an explosive prospect: if the next Xbox is truly based on a Windows base, it would no longer be limited to the closed ecosystem of the Microsoft Store. Its main advantage would then become access to all PC platforms, whether Steam, the Epic Games Store, or even GOG and other stores. A console capable of natively launching games from different stores would completely disrupt the current model, and transform the Xbox into a true universal video game hub, halfway between console and computer.

It would also be a very direct way for Microsoft to strengthen its Game Pass strategy while capturing PC players who refuse to lock themselves into a single store. The promise would then become unique: enjoying the comfort of a home console while retaining the freedom of the PC, with potential access to thousands of games well beyond the traditional Xbox catalog.

Backwards compatibility would remain a central pillar of the Xbox ecosystem

Despite this assumed PC orientation, Microsoft does not intend to abandon what makes the historic identity of the brand: backward compatibility. Reports insist that this future console would continue to support the existing Xbox library, including Xbox One games, Xbox Series, and even retro titles from previous generations. The objective would therefore be to maintain software continuity while radically expanding the field of possibilities thanks to Windows.

In this logic, the 10th generation Xbox would become a hybrid platform: capable of running Xbox games like a classic console, while offering the openness of the modern PC. An ambitious synthesis, but consistent with the direction that Microsoft has been following for several years, where Xbox is no longer just a console, but a global ecosystem present on console, PC, cloud and portable devices.

Microsoft would consider several models, with partners like ASUS

Another particularly striking point: this future generation would perhaps not be limited to a single single console. Microsoft could take a Valve-like approach with Steam Machines, allowing partners like ASUS to design their own hardware variants. We would thus have a “standard” Xbox console, defining the reference experience, but also more accessible or more powerful versions depending on needs and budgets.

This strategy would make it possible to multiply the formats: compact models, premium versions, more affordable machines… while relying on the same Windows base + Xbox layer. A way of transforming the Xbox into an open platform, where the hardware could evolve more freely, instead of being fixed for an entire generation.

A worrying price around $1,000, but a possible release in 2027

This technological upgrade could, however, come at a cost. Rumors suggest a price of up to around $1,000 for the main model, which would place the console in a category much closer to a gaming PC than a traditional console. Microsoft could nevertheless compensate with less expensive variants offered by its partners, in order to reach a wider audience.

The current context also plays a major role: the prices of memory, storage, and critical components remain extremely volatile, and Microsoft will have to deal with an industry under pressure, particularly in the face of the priority given to AI chips and supply constraints.

Regarding the launch window, Lisa Su, CEO of AMD, reportedly mentioned a release in 2027, with AMD already working on the semi-custom SoC that will power this machine. But Microsoft would not be tied to a fixed date, and could delay the launch if the console layer of Windows 11 is not deemed mature enough, or if economic conditions make the product too difficult to position.

The ASUS Xbox Ally would already serve as a test bed for this transition

Finally, Microsoft is already using devices like the ASUS Xbox Ally (which we tested here) as a testing ground. The firm would recognize that the current experience is still imperfect, but precisely useful for identifying the frictions of an embedded Windows in a console environment. Among the features tested, an option using the NPU to automatically generate videos of the player’s best moments could arrive as early as March 2026, and then be integrated into the future Xbox.

If this vision is confirmed, the 10th generation Xbox could well be the most atypical console ever designed by Microsoft: a hybrid PC-console, open, modular, backwards compatible, and potentially capable of bringing together all video games under a single machine. A silent revolution… but perhaps the only viable path to redefine the future of living room gaming in the face of the rise of the PC and the cloud.