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Xbox My pitch for Xbox to salvage its video game hardware business

Derachi

Fresh Eater
Founder
Pronouns
he/him
The recent Xbox news regarding exclusives has me feeling extremely badly about the Xbox platform

So let me pitch a possibility of how Xbox can salvage the hardware situation and anyone with more knowledge on the tech side of things tell me if my idea is valid or not

They should let end users install Windows 11 onto existing Xbox Series consoles and turn them into fixed-spec Windows Gaming PCs that have an Xbox UI front end for controller-based navigation, but also you can install whatever you like on them because they’re Windows machines, including Steam and Steam games. Similar to a Steam Deck, where it is just a Linux computer under the hood, but it has a Steam front end to make it feel more console-like.

Going forward, they can continue the Xbox brand by making small form-factor gaming PCs for the TV/living room and branding them Xbox. All of your Xbox purchases carry forward, but also you can play just about any Windows game/software on it as well.

Would that work?

I love my Series X and Series S, and I don’t want to see Xbox go the way of the Dreamcast.
 
I think it'd be worth a shot. I've always kinda wondered why Xbox never got into the idea of Xbox-branded PCs tbh, what with them being the Windows people and all

Like, sure, Valve couldn't make Steam Machines work, but I think Microsoft would be better positioned for that kind of thing
 
I had a similar thought a while back, that Microsoft will release a version of the Xbox Dashboard to OEMs as a SteamOS competitor, particularly for Steam Deck clones. With recent speculation that Xbox is going to switch to a 3DO-style manufacturing model, this fits right in. I fear not only will this cause QA issues with Xbox, but it might also influence Valve into switching back into this model (they've shown interest in releasing SteamOS to OEMs) and also completely dropping first-party manufacturing, which wouldn't be ideal. PC manufacturers do not know what they are doing; it has been this way since the beginning of the PC platform.
 
The recent Xbox news regarding exclusives has me feeling extremely badly about the Xbox platform

So let me pitch a possibility of how Xbox can salvage the hardware situation and anyone with more knowledge on the tech side of things tell me if my idea is valid or not

They should let end users install Windows 11 onto existing Xbox Series consoles and turn them into fixed-spec Windows Gaming PCs that have an Xbox UI front end for controller-based navigation, but also you can install whatever you like on them because they’re Windows machines, including Steam and Steam games. Similar to a Steam Deck, where it is just a Linux computer under the hood, but it has a Steam front end to make it feel more console-like.

Going forward, they can continue the Xbox brand by making small form-factor gaming PCs for the TV/living room and branding them Xbox. All of your Xbox purchases carry forward, but also you can play just about any Windows game/software on it as well.

Would that work?

I love my Series X and Series S, and I don’t want to see Xbox go the way of the Dreamcast.
there's a discord leak that says almost exactly that

WhatsApp_Image_2024-01-18_at_10.png
 
That's the same solution I had in my mind for saving iPads! Nix the iPad OS and have MacOS on iPads. At least they could have the very limited game library of Macs on them.

I don't think Xbox going in the same way of Dreamcast. they're gonna stretch this generation as long as they can and then they'll assess the situation for the next gen Xbox. The thing about Xbox is that it's getting almost full third party support without MS even trying so no reason to kill it, ever.
 
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So basically, Microsoft will license the Xbox brand so tech companies can create Xbox-branded Mini PCs?

That's an interesting strategy...
 
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I had a similar thought a while back, that Microsoft will release a version of the Xbox Dashboard to OEMs as a SteamOS competitor, particularly for Steam Deck clones. With recent speculation that Xbox is going to switch to a 3DO-style manufacturing model, this fits right in. I fear not only will this cause QA issues with Xbox, but it might also influence Valve into switching back into this model (they've shown interest in releasing SteamOS to OEMs) and also completely dropping first-party manufacturing, which wouldn't be ideal. PC manufacturers do not know what they are doing; it has been this way since the beginning of the PC platform.

Agree with this. SteamOS going OEM and into the mainstream would be great, and it could arguably be the first real retail threat to Windows desktops market share in nearly 3 decades.
 
I personally would love that, full fat windows 11 on xboxes. If you are going to spend hundreds of dollars, why not get something that can be used productively?

But what's the long term benefit to MS? You can now buy games from other platforms on your existing Xbox. Almost everyone would install steam ASAP. Moding and piracy would be far easier and I don't think MS would be a fan.

Releasing a new and improved XBOX OS to 3rd parties (especially one better optimized for handheld, oh and mobile for streaming and a few ports) seems like a no brainer, I assume they have already been working on that. But the PC xbox app is still pretty mediocre so IDK.

Similarly Steam OS w/linux/proton going to 3rd parties will also be great overall. But I hope it wouldn't dissuade Valve from making Decks or maybe a future steam machine. Its not just the OS that makes them good. The exact level of grunt and hardware design and feature set complements the deck's needs perfectly and being able to sell it cheaply due to getting that steam revenue is also great. You probably lose a lot of that with 3rd parties. But I don't know that valve themselves can even make a whole lot so just getting other manufacturers and companies involved may be good for their market share. They don't even sell decks in my country.

Personally I think MS needed to backtrack a bit. They needed to say, MS team games will be xbox console exclusives for a few months, then they will come to PC+gamepass. Then eventually to other platforms, maybe switch. And then make make it clear they will stay exclusively off Steam for at least a year and Sony, if ever for 2-3. They have absolutely devalued their brand and exclusives. There is almost zero reason to buy an Xbox already (outside of being a bit cheaper than an equivalent PC upfront), and that's before releasing more exclusives to Sony.
But really It's to late. We wouldn't be hearing about this if their metrics showed a good chance of the traditional console model being profitable for them in the long term. They didn't think it was worth cultivating their dev teams enough last gen, made many wrong moves with the xbox one and now have shifted their strategy to digital and gamepass subs. I hope it works enough for them to stay in the market in the long term so they can keep more competition in the games market. They've been playing the low cost, growth subscription phase for a while. I hope its not just revenue and expenses that have increased.
 
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This but for real though

Put Microsoft Office on Xbox
 
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Counterpoint. Microsoft should produce an Xbox that also runs Steam. Let me play my Steam library and I'll also sub to Gamepass.
That’s what I pitched: a Windows PC branded as “Xbox” where you can play Xbox games but also you can just install steam
 
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Yeah I'd absolutely accept that. I mean, people are already using Series consoles for emulation. That's been a selling point, imo.
 
As someone who has a Series X connected to my TV as well as a Gaming HTPC that’s built years ago (which hasn‘t been used for years now), what‘s the point in having a console with all the drawbacks of PC gaming. (Shitty ports, instability, endless tinkering and fixing shit)?
 
Xbox possibly going third party just after I've moved over from PlayStation for this gen definitely does sound like something that would happen.
 
Isn't the only reason, that the xbox is priced as it is, because Microsoft get the money via Services and Games.
If MS would allow to put on to the system Windows, which you would need to buy,
would they need to increase the price since the HW is practically on its own not profitable enough?
 
Isn't the only reason, that the xbox is priced as it is, because Microsoft get the money via Services and Games.
If MS would allow to put on to the system Windows, which you would need to buy,
would they need to increase the price since the HW is practically on its own not profitable enough?
No. MS doesn't really care how you get windows as long as you have it. You can even download it for free from MS and use it forever without paying a license
 
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I agree with this if it means I can turn my Xbox Series S into a plex server somehow.
 
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Don‘t know if this would safe their business model, but from a consumer perspective this would be the best thing ever! An affordable PC that can come in different form factors and is guaranteed to run the XBOX Library plus the possibility play Steam Games and co would be my dream device.
 
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Given Xbox Series (and PS5 for that matter) are practically just regular PCs, but with custom OSes using relatively off-the-shelf parts, I don't see why I couldn't be done.

Valve has proven you can make a handled Gaming PC work, and though it is using Linux with the Proton translation layer, it's working far better than it has any right to, which also shows the wizardry of the engineers responsible. For someone like Microsoft though, the task would technically be easier since they already have Windows, but would be in a position to create a bespoke Gaming-centric Windows OS ala SteamOS without the bloat that Windows is always known for (Why they haven't already made a Windows version for gamers is a weird one strangely enough).

It would also give developers an opportunity to "tailor" their games to work on specific set of hardware like they already do with consoles as we know it. Some devs have already taken to case with this with Steam Deck, providing Deck-specific tweaks to provide a better experience (though I think it's mostly on the Indie dev side).

And if they allow Xbox Live, Gamepass, AND Steam on it, well, you've just made PC Gaming even more accessible.

I'm all for this new timeline.
 
Then people would just mostly buy their games through steam/epic, emulate stuff and pirate.
NO ONE, literally NO ONE would use the microsoft store to buy games on an xbox console if it had a full fat "windows 11 mode"
Gamepass? yeah sure, but then there would also be a lot of people who wouldn't buy it. Either because they'd already have a lot of games on their steam library or because gamepass could just you know, not have the game they want to play. Or maybe they don't feel like paying for a subscription? I know many who wouldn't.

Now, if it was a tie-in purchase say, you buy a series x that has a windows 11 mode and get like 3months of gamepass with it + the gamepass app comes preinstalled then yeah, I could see them getting people interested in re-subbing.


But that's not how you save xbox. You save the platform by making multiple heavy hitters that are TRULY locked down to the platform. As in, only on xbox, not PC.
It's. That. Simple.

Phil makes people believe it's hard saying stuff like "even if we had games that get people to buy our console it's not enough"
OF COURSE IT'S NOT ENOUGH, IF YOU MAKE YOUR GAME AVAILABLE ON A COMPETING PLATFORM
DUH

Like, why in HELL would I buy an xbox when I already have a pc that also has gamepass? My pc might not be as strong as an xbox, but it's good enough? like, if I wanted something better, why would I get an xbox when I can just buy a BETTER PC???

People are already turning their heads away from the PS5 because of timed exclusives. Even though there are multiple games that are stuck on ps5 like all the psvr2 experiences, gran turismo, ps4 exclusives like bloodborne...
 
Then people would just mostly buy their games through steam/epic, emulate stuff and pirate.
NO ONE, literally NO ONE would use the microsoft store to buy games on an xbox console if it had a full fat "windows 11 mode"
Gamepass? yeah sure, but then there would also be a lot of people who wouldn't buy it. Either because they'd already have a lot of games on their steam library or because gamepass could just you know, not have the game they want to play. Or maybe they don't feel like paying for a subscription? I know many who wouldn't.

Now, if it was a tie-in purchase say, you buy a series x that has a windows 11 mode and get like 3months of gamepass with it + the gamepass app comes preinstalled then yeah, I could see them getting people interested in re-subbing.


But that's not how you save xbox. You save the platform by making multiple heavy hitters that are TRULY locked down to the platform. As in, only on xbox, not PC.
It's. That. Simple.

Phil makes people believe it's hard saying stuff like "even if we had games that get people to buy our console it's not enough"
OF COURSE IT'S NOT ENOUGH, IF YOU MAKE YOUR GAME AVAILABLE ON A COMPETING PLATFORM
DUH

Like, why in HELL would I buy an xbox when I already have a pc that also has gamepass? My pc might not be as strong as an xbox, but it's good enough? like, if I wanted something better, why would I get an xbox when I can just buy a BETTER PC???

People are already turning their heads away from the PS5 because of timed exclusives. Even though there are multiple games that are stuck on ps5 like all the psvr2 experiences, gran turismo, ps4 exclusives like bloodborne...
Mmm ok I'll break this post down and argue point by point but I'm gonna preface with: wow, you sure do like acting like your assumptions are facts. Every time one of your points does this I'll just add a [Citation Needed] for convenience
Then people would just mostly buy their games through steam/epic, emulate stuff and pirate.
[Citation Needed]

I think you underestimate that the appeal of a console for a lot of people is simplicity. Sometimes people DON'T want to futz about with Windows, they just want to quickly buy a game digitally and play it. For example, my father has a Series S so he can play Forza, Flight Simulator and MLB The Show. He's not going to buy a Windows 11 license, install Windows 11, figure out what Steam is or how to install it, and buy those games there "just because."
NO ONE, literally NO ONE would use the microsoft store to buy games on an xbox console if it had a full fat "windows 11 mode"
[Citation Needed]

Take it away, Tim:



Repeating what I said above: a lot of people, especially folks who would buy a console instead of a PC, want convenience above all else. Assuming "LITERALLY NO ONE" wants convenience is pretty shortsighted and silly. If you have anything to back up this claim (aka a Citation lmao) I'd love to see it.
Gamepass? yeah sure, but then there would also be a lot of people who wouldn't buy it. Either because they'd already have a lot of games on their steam library or because gamepass could just you know, not have the game they want to play. Or maybe they don't feel like paying for a subscription? I know many who wouldn't.
"People won't get Game Pass because they already have games on Steam or it doesn't have the games they want" lmao if they have games in a Steam library then they probably already have a PC???? What is this argument?? "Or maybe they don't feel like paying for a subscription?" OK?? Those people exist right now. But also: a lot of people DO like paying for Game Pass because it's a good value???

You're basically arguing against Game Pass here saying "I know people who don't want to pay for it" which is probably true but also you're acting like Game Pass doesn't already exist and have millions of subscribers????
Now, if it was a tie-in purchase say, you buy a series x that has a windows 11 mode and get like 3months of gamepass with it + the gamepass app comes preinstalled then yeah, I could see them getting people interested in re-subbing.
... You realize the Xbox already has Game Pass? Windows has zero part of that, unless that end user is like "I want to play PC Game Pass games on my couch." Like, buying an Xbox and subbing to Game Pass is a thing millions already do? I genuinely don't understand what you're saying here.
But that's not how you save xbox. You save the platform by making multiple heavy hitters that are TRULY locked down to the platform. As in, only on xbox, not PC.
It's. That. Simple.
[Citation Needed]
The Xbox One generation started with them making non-PC exclusives and no one cared? It isn't "that simple."
Phil makes people believe it's hard saying stuff like "even if we had games that get people to buy our console it's not enough"
OF COURSE IT'S NOT ENOUGH, IF YOU MAKE YOUR GAME AVAILABLE ON A COMPETING PLATFORM
DUH
You realize Microsoft (owners of Xbox) also make Windows, right? Windows is not competing with Xbox, it's complimenting it. Let's use another company as an example. Apple makes the iPhone, the iPad and the Mac. Now the iPhone is it's own thing but let's look at the iPad and the Mac. They're both productivity machines that are computer-like in nature. Is the iPad competing with the Mac? No. Because while they're similar in ability, one is meant for people who just want a touch-first interface that's easy to navigate and use, and some folks want a terminal window/command prompt. And many people, myself included, want both because they serve different purposes. Same with an Xbox and a Windows PC. Microsoft makes Xbox and they make Windows, which ever you choose to use, they're up. Some folks do not want to futz about with Windows, they want to plop on the couch, pick up the controller, download a game and play it on their TV. Some folks want to sit at a desk and play games on a computer. Why would they say "OK, customers of our computer operating system don't get to play Game X, that's only for Couch players?" What do they gain from that? Don't say "a console sale." The Xbox One generation started with them making games not available on PC and how did that go for them? I'll answer for you: badly.
Like, why in HELL would I buy an xbox when I already have a pc that also has gamepass?
A lot of people don't have a PC??? Maybe you want an easy to use, all-controller-input box that you plug into your TV and just play games without futzing about with Windows??? You went from "Literally no one wants this" to "well, I don't want it."
like, if I wanted something better, why would I get an xbox when I can just buy a BETTER PC???
Because you can get a Series S for like 300 bucks and a halfway decent PC is at the very least three times that price?? fam come on, if you're going to argue against me this strongly, don't leave your arguments full of holes lmao
People are already turning their heads away from the PS5 because of timed exclusives. Even though there are multiple games that are stuck on ps5 like all the psvr2 experiences, gran turismo, ps4 exclusives like bloodborne...
The PS5 is one of the fastest selling video game consoles of all time???? Whaaaat are you TALKING ABOUT???? "People are already turning their heads away from PS5" [CITATION NEEDED][CITATION NEEDED][CITATION NEEDED][CITATION NEEDED][CITATION NEEDED][CITATION NEEDED]
 
The recent Xbox news regarding exclusives has me feeling extremely badly about the Xbox platform

So let me pitch a possibility of how Xbox can salvage the hardware situation and anyone with more knowledge on the tech side of things tell me if my idea is valid or not

They should let end users install Windows 11 onto existing Xbox Series consoles and turn them into fixed-spec Windows Gaming PCs that have an Xbox UI front end for controller-based navigation, but also you can install whatever you like on them because they’re Windows machines, including Steam and Steam games. Similar to a Steam Deck, where it is just a Linux computer under the hood, but it has a Steam front end to make it feel more console-like.

Going forward, they can continue the Xbox brand by making small form-factor gaming PCs for the TV/living room and branding them Xbox. All of your Xbox purchases carry forward, but also you can play just about any Windows game/software on it as well.

Would that work?

I love my Series X and Series S, and I don’t want to see Xbox go the way of the Dreamcast.
I hadn’t seen this yet, but ironically said in the Xbox rumor thread they should go the 3DO route and let the tech manufacturers make various levels of models and sell them off. Could have a built in Roku app, Samsung TV integration, high end Blu-ray Disc players with Xbox console built in.
 
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Fam, I know you're disappointed at my arguments without citations but relax a little, drink some water or any other cold beverage you might enjoy and listen:

I don't think xbox series s and x wouldn't sell more if they had a "windows 11 mode". Quite the contrary, they would sell like hotcakes because people would have prebuilts for waaaay cheaper (ofc, ignoring the whole market of people who like to upgrade their PC and wouldn't buy a prebuilt that only takes storage upgrades).

But the thing I'm trying to say is: why microsoft would even do that? I don't know if they're still operating on losses when it comes to manufacturing the series s and x and selling them for that price point but assuming they aren't, their profit must still be really low.

So okay, they would've gathered a way bigger install base, but would that necessarily translate into a higher number of sales on microsoft's game store or a higher ammount of gamepass subscriptions?
Because like I said, the pc games market is dominated by steam and EGS and people HATE when they have to get their games outside steam.

And when I say PEOPLE I don't necessarily mean myself, I mean ANYONE who games on PC. If you ask ANYONE in any forum, comments section, etc... if they'd rather have their games on steam or have to use another launcher, I can guarantee you, it would be a 9/10 people being against downloading another launcher or buying games on another storefront.



I believe someone else on famiboards said it before, I think it was @oldpuck, I'm not sure:
Something along the line of: Xbox exists today as a mean of getting people into microsoft's platform to guarantee that microsoft gets the profit from every game sale instead of say, valve and to serve as a platform for gamepass.

If you introduce a "windows 11 mode" into this equation, you remove the restraints of the platform, allowing people to buy from steam/egs generating MS nearly zero profit (outside of maybe hardware sales - but again, assuming they can even mass manufacture them without losses)


And finally: you can say "CITATION NEEDED, CITATION NEEDED" all you want, but if that's the case, I'm also eager to say:
do you have any research that proves there's any meaningful interest from pc gamers on microsoft's store? as in, marketshare-wise or just considerable growth in any shape or form? COMPARED to the steam/EGS competition

And I know the point here is gamepass, but then again: do you have any kind of research that points to microsoft possibly being able to increase the amount of gamepass subscriptions by adding the option to run windows on xbox machines?

Also, your whole justification for why the xbox doesn't compete with PC is flawed:
When people consider buying a console, they look first and foremost at the GAMES that platform offers. If, at the moment of purchase, they realize that the competing platform has most if not all the games they want to play and is similarly priced, they might pick that one instead. But WHAT makes they pick that one instead? exclusives. Every. Goddamn. Time. It's either exclusives or price.

Listen, you might say it's my opinion all you want, but that opinion of mine is based on history.

Every single time it has been like this with consoles.
Platform has no games? flop. WHY THEN is PS5 selling well?* Multiple reasons:
1 - PS4 users (117mi+) who migrated to PS5 because sony's platform is where their achievements are, their digital games, friends list...
2 - Timed exclusives. Might be timed, but it's still an exclusive regardless. Some people are content creators, reviewers, etc... and they need to play the game on release. Sometimes they are just impatient.
3 - Actual exclusives - from both PS4 and PS5 that aren't on PC and have no indication that they're getting ported whatsoever.
4 - Pricing scheme: Why would I waste 300$ on a Series S when I can get a PS5 that's close in performance to a series X for just ~100$ more? Both the series S and ps5 digital don't play physical media but now you can just pay a bit less for a PS5 slim digital and upgrade adding a drive later.
Also, the ps5 comes with 1tb by default. Only the 350$ Series S comes with 1tb and you KNOW people will prefer a console with more storage considering the size games are now. Also, I'm assuming most people would rather buy something new, not pre-owned or refurbished. In that case, a brand-new ps5 slim is still 50$ less than the series X. And microsoft to this day has no cheaper digital option for the series x (with the same performance of series x, not the s).

*note that when I said people are turning away from it, I said that many people I know IRL, many people I interact with only online, even people I haven't even talked to (online), said that they lost interest on ps5 because most of it's games are on PC.
 
Also a few points I missed:
The Xbox One generation started with them making games not available on PC and how did that go for them? I'll answer for you: badly.
That has nothing to do with the exclusive strategy in of itself! what the heck?
We all know WHY xbox one failed: the whole "always online, can't share your games" deal with the introduction of the console, the way it was marketed as a media system instead of a console and whatnot.

How can you sell a platform exclusive if people aren't buying your platform to begin with? A reminder that all xbox one models combined sold nearly half of the total amount of ps4s. And that's AFTER the xbox team backtracked on their mistakes with the introduction of the generation, released gamepass, etc...
It could've sold even less if, for instance: the wiiu turned out out be a great console stealing marketshare, if they didn't go back on their mistakes and iidk, if gamepass didn't exist.

And like, would it even matter considering games like dead rising 3 released a year or so later on pc anyways, and other games like gears, sea of thieves, ori, sunset overdrive, ryze son of rome, etc... all released a couple months later on pc or in tandem with the console release?

How do you call something an exclusive if like a month of so later the game's on PC?

And before someone points out "But all these games would sell considerably less if they were only on xbox, not on PC"
OBVIOUSLY, but that's the point of an exclusive: it's not about selling the most units you can, it's about enticing people to buy the platform that game can be played on.


And the whole deal of couch gamers vs core pc gamers:
You're stuck with the console gamer mentality that console users who pick up a pc are incapable of downloading steam, picking up a controller, connecting it and launching steam big picture (or hell, just launching the game through steam with the controller already connected).

Gamers aren't dumb. People KNOW how to use a computer. If we are talking comfort, steam big picture mode, custom launchers etc all solve that issue.
You might run into problems sometimes? yeah, maybe. But your take comes from a really console-centric view that the PC experience is still stuck in like, the late 90's-very early 2000s.

In 2023-2024 we surely have weak pc ports still, but those are usually fixed within a couple days-months. I also haven't run into the issue of having to set up a config file in over a decade (and I own hundreds of games on steam + egs). It literally has 99% of the time been: press play, turn down 3-4 settings (which i can do from the controller most of the time) and enjoy the game.

And speaking of comfort: what IF the genre of game I'm playing REQUIRES a mouse and keyboard? how the hell am I going to play an RTS, or a moba properly on a controller? How come no couch gamer talks about this? You can't expect them to adapt every rts like they did with AoE for xbox. And even then, I'd much rather play AoE on KB+M on my pc than using a controller. I'd also much rather play an FPS with a keyboard and mouse.

Lastly, about the "a lot of people don't have a pc" argument:
Yeah, sure. Nowadays there's a lot of people who own only a smartphone, console + tablet and many people don't own a decent computer spec-wise.
But it can also be said that many people don't own an xbox. And by not owning an xbox they obviously don't own games, so they'd normally need to rely on gamepass or, buy games in bulk in order to have any meaningful use of the device.

But looking at the people with weak pcs: they still have access to a huge library of lightweight indie/2d titles on steam and egs.
And idk, they might be people with desktops that have weak parts but are just a couple of simple upgrades away from being able to play newer titles.
 
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It's funny how people made jokes about this for years for Nintendo and it's Xbox that will be doing it potentially.
 
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Also, if people weren't buying xbox exclusives that says more about the games themselves than the platform.
 
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Given Xbox Series (and PS5 for that matter) are practically just regular PCs, but with custom OSes using relatively off-the-shelf parts, I don't see why I couldn't be done.
They are "practically just regular PCs" in the same way that the Switch 2 is "practically just a car radio". There is nothing "off-the-shelf" about the Xbox Series or the PS5.
 
I still think Quick Resume is an amazing feature, and no other current console (or even PC) has it. If Xbox is to continue without exclusives, I think it needs to focus on features like Quick Resume and making the overall playing of games better on Xbox than the competition.
 
The recent Xbox news regarding exclusives has me feeling extremely badly about the Xbox platform

So let me pitch a possibility of how Xbox can salvage the hardware situation and anyone with more knowledge on the tech side of things tell me if my idea is valid or not

They should let end users install Windows 11 onto existing Xbox Series consoles and turn them into fixed-spec Windows Gaming PCs that have an Xbox UI front end for controller-based navigation, but also you can install whatever you like on them because they’re Windows machines, including Steam and Steam games. Similar to a Steam Deck, where it is just a Linux computer under the hood, but it has a Steam front end to make it feel more console-like.

Going forward, they can continue the Xbox brand by making small form-factor gaming PCs for the TV/living room and branding them Xbox. All of your Xbox purchases carry forward, but also you can play just about any Windows game/software on it as well.

Would that work?

I love my Series X and Series S, and I don’t want to see Xbox go the way of the Dreamcast.
I agree with this one but here’s one I think you’ll like, release banjo nuts and bolts on switch you and I both like it.
 
Microsoft and Sony have been fighting the console war like a zero-sum game for years now.

Their hardware loses a shitton of money per-unit. Using exclusives to sell hardware which loses money is not a sustainable business model. It was never meant to be. It was about beating the other guy to a pulp, then profit by dominating the market once your competition is gone.

There used to be two technological forces that made this whole process less damaging for the "loser." It used to be that hardware got cheaper over the course of a generation, so money losing hardware could eventually become profitable. And it used to be that all competitors started mostly from zero with the next generation, so as long as the kill wasn't total, companies could get back in there.

Hardware development has slowed down - MS and Sony are likely to never make money on the hardware this generation, at least not till the very end. And digital libraries + backwards compatibility meant that gamers didn't replace their old console. They upgraded it. People stuck with their team even more than in the past.

This has happened once before in our industry - and I don't mean Sega. I mean Nintendo. Nintendo lost this battle before, but they didn't leave the hardware market. Instead they stopped playing the zero sum game.

I don't know what Microsoft's plans are. But they have to stop playing the zero sum game as well. And like Nintendo, I think they can do it without leaving the hardware market. The Series S proves that Microsoft can offer hardware that delivers something different from Sony. Microsoft can go "third party" while staying in the hardware game by offering "Xboxes" that are fundamentally different from what Sony offers.

Here is my related, but alternate pitch

Imagine the sequel to the Series S being a handheld. Imagine the follow up to the Series X being an $1000 "Day 1 Pro System" that's double the performance of the PS6. And imagine an Xbox Gaming PC that offers roughly the same power as the competitor, and a console-like experience, but can also switch into a full-fat Windows desktop with Steam/Epic game store/etc for all your "dammit this game needs a mouse" pleasure.

Each of these pieces of hardware hits a niche that Sony doesn't currently touch. Each of these pieces of hardware dodges the need to be sold at a loss because of their specialty nature. That allows each of these products to be a profitable line of business on their own, even if the games aren't exclusives. And if MS wants to subsidize this with a "classic console formfactor" they're no longer required to compete with Sony blow-for-blow. That device can be slightly underpowered, but offers an out of the box experience for the fan who lives in the ecosystem
 
They are "practically just regular PCs" in the same way that the Switch 2 is "practically just a car radio". There is nothing "off-the-shelf" about the Xbox Series or the PS5.

Yes and no? It's not off-the-shelf in terms of you can't actually buy the APUs themselves (though binned PS5 chips exist as the AMD 4700s as a desktop kit), but they are off-the-shelf from the standpoint of they're just using a Zen 2 CPU, and a RDNA2 GPU, and fit it to each company's specs. AMD didn't have to reinvent the wheel here to make it work. They already had the technology in place, and it currently exists in the PC space.

Maybe it's a semantics issue here, but I don't see the APUs in either the PS5 or Xbox Series as anything special, or unique. AMD took what they already had, and tailored it for Sony, and Microsoft, respectively.

But I say the same for T239. It's a Tegra Orin chip that already exists for the Automotive sector, and stripped it down to tailor it to the desired specs. It wasn't something Nvidia had to make from scratch/clean slate or anything.
 
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My pitch would be for Microsoft to figure out who they want Xbox to be for, nowadays.

Like, I'm serious - who the f*** is the target audience for Xbox as a platform or brand? Back in the 00s, when Xbox was up-and-coming, it was a system that felt like it was designed for western audiences who wanted FPS and western-style RPGs on console and Xbox delivered on that front for a good while. In the 2010s then, Sony encroached on those markets and it has become their bread and butter since, alongside their own focus on "cinematic" AAA games.

Platformization through GamePass hasn't helped Xbox either - the system seems to have plateaued - and their moneyhatted exclusives seem to have fallen short of expectations or just completely failed to ignite the fire under Xbox at all.

To me, it seems, Microsoft just has no long-term strategy for Xbox, just stuff to throw at the wall and regain a short momentum that peters out after a while.
 


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