Microsoft will reportedly partner with other computer companies like Asus for a variety of next-gen Xbox systems. Obviously, this isn’t new territory after launching the ROG Xbox Ally handhelds, but it would be groundbreaking on the home console front. The strategy also seemingly echoes Valve’s original vision for Steam Machines from over a decade ago, in which they talked about teaming up with a dozen companies for different hardware options.
According to Windows Central, Microsoft is looking at making a premium system that could retail for as much $1,000. However, Windows partners could then offer more price-friendly models of the next-gen Xbox, giving people various options to jump in. Speaking of Windows, the report adds that Windows will be powering the device, as the “Xbox Ally platform from Asus is a hint at a very early version of the next-gen Xbox console formula.”
Last year, Microsoft CEO Satya Nadella noted that the next-gen Xbox could be like a PC. Windows Central reaffirms that direction, with Microsoft possibly marketing the system as one that can play games and serve as a “coding station” or a “music production studio.”
The next-gen Xbox might also feature the Epic Games Store, as well as Valve’s Steam storefront. As previously mentioned, this would fit in line with what Microsoft has done with the ROG Xbox Ally handhelds.
Last but not least, the report states that Microsoft is looking at 2027 for launching the next-gen Xbox. This comes just a week after AMD CEO Lisa Su surprisingly teased next year as a possible date. Microsoft and AMD announced their partnership officially for the next Xbox console in June 2025.
