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Next Xbox Tipped as Hybrid Gaming PC

Authore: OwenUpdate:May 17,2026

Microsoft has unexpectedly announced a partnership with AMD for its next-gen Xbox "devices." While hardly surprising, this collaboration sparks important discussions about the future of gaming.

Beyond confirming the hardware provider, the more significant revelation is Xbox's plan to collaborate with the Windows team to establish Windows as the premier gaming platform. Coming just after last week's ROG Xbox Ally X reveal, this strongly suggests the next Xbox will resemble a gaming PC.

Working Closely With Windows, Huh?

Recent Xbox generations have increasingly mirrored gaming PCs, particularly in their operating system design. The Xbox Series X interface bears clear similarities to Windows, especially for users familiar with Windows 8 and 10.

In Microsoft's announcement video, Xbox president Sarah Bond emphasized their vision: letting players enjoy games "with whoever they want, wherever they want." This aligns with Microsoft's ongoing strategy to expand accessibility, notably through initiatives like Play Anywhere.

Where do you play your games?

As someone who games across multiple platforms, I appreciate how Play Anywhere syncs my progress. Bond's mention of an Xbox experience not limited to a single store suggests potential support for third-party platforms like Steam and Epic Games Store on the next Xbox - especially considering Microsoft's recent Asus partnership for a multi-store gaming device.

The ROG Xbox Ally X As a First Step

The ROG Xbox Ally X stands out among Windows handhelds through Microsoft's collaboration with Asus, featuring a customized Windows version. While specifics remain unclear, we know it will omit unnecessary desktop components.

More significantly, the device boots directly into an enhanced Xbox app rather than the standard desktop. This streamlined approach mirrors SteamOS's efficiency on Steam Deck, optimizing both usability and performance.

If the next Xbox runs Windows, similar optimizations will be crucial. Traditional consoles offer better performance through simpler software, and Microsoft's current development efforts likely extend beyond just the Ally X.

The Next Xbox Should Be a PC, Even If It's Not

Despite their versatility, gaming PCs face ongoing challenges with affordability. High-performance handhelds like the SteamOS-powered Lenovo Legion Go S remain significantly pricier than consoles.

Windows licensing contributes to this price gap, explaining why similarly specced devices like the ROG Ally cost more than Steam Deck.

Consoles typically offset hardware costs through game licensing and sales. Microsoft now has a unique opportunity to implement this model with what's essentially a specialized gaming PC.

With PC gaming's rising popularity and persistent graphics card prices, this new Xbox could provide the accessibility boost the PC gaming market needs.

Concept image of potential Xbox PC hybrid device