Why Microsoft’s Next Xbox Should Just Run Windows
By USA NEWS TODAY| June 18, 2025
Microsoft recently teased its next-generation Xbox, promising a “strategic multi-year partnership with AMD” and bold claims about “graphics innovation” and cross-device compatibility. But the most revolutionary step the company could take isn’t about hardware — it’s embracing Windows as the backbone of its next console.
Breaking Down the Console-Windows Barrier
For years, the line between gaming PCs and consoles has blurred. Modern consoles already run on PC-like architecture, and services like Steam's Big Picture Mode and SteamOS aim to turn PCs into couch-friendly gaming devices.
Now, with Microsoft unveiling handheld Windows-based devices like the ROG Xbox Ally, complete with a new full-screen Xbox UI, it’s clear the company is merging the console and PC experience. This new interface, built specifically for handhelds but coming to other devices in 2026, could also serve as the foundation for a home console.
A Windows-Powered Xbox? Why Not.
Imagine an Xbox console that boots directly into a streamlined Xbox-centric Windows experience. It would:
- Offer instant access to the entire Windows game library, including titles unavailable on consoles.
- Maintain backward compatibility with Xbox games.
- Eliminate the need for developers to port games for console-specific architecture.
This approach also aligns with Microsoft’s messaging. Xbox chief Sarah Bond said the company is “working closely with the Windows team” to build a unified gaming platform across devices — one “not locked to a single store or tied to one device.”
Learning from Steam Machines’ Failures
Valve’s attempt to create a Linux-based PC console, the Steam Machine, failed due to performance issues and a limited game library. A Windows-based Xbox wouldn’t face those limitations. It could combine the openness of PC gaming with the plug-and-play ease console users expect — all while avoiding the fragmentation that hurt Valve’s hardware push.
Plus, Microsoft could license the Xbox Windows interface to third-party manufacturers, expanding its reach the way Android powers phones from multiple brands.
Potential Trade-Offs — and Why They Might Be Worth It
Giving up the traditional console model means Microsoft could lose its 30% cut from third-party Xbox Store sales. And PC hardware partners might not be thrilled to compete with a Microsoft-branded living room gaming box.
But the upside? Microsoft cements Windows as the universal platform for gaming — whether you're playing on a handheld, desktop, or under your TV.
Xbox’s Identity Crisis — and the Way Forward
Microsoft’s recent console sales have lagged behind rivals like Sony, and exclusive Xbox titles have increasingly been ported to other systems. In contrast, PC gaming on Windows remains dominant, with most developers prioritizing the platform despite Apple’s and Valve’s efforts to challenge it.
By turning Xbox into a Windows-powered living room PC, Microsoft could:
- Tap into its massive PC ecosystem.
- Revitalize a faltering console brand.
- Simplify game publishing and player access across platforms.
The Evolution Is Already Underway
Since launching “Xbox on Windows 10” in 2015, Microsoft has nudged its Xbox ecosystem closer to PC gaming. Programs like Xbox Play Anywhere and Game Pass for PC have already trained users to expect unified experiences across platforms.
With cloud gaming and cross-play gaining traction, a unified OS makes even more sense. Why force developers to create separate console versions when the next Xbox could just run the same code they build for Windows?
The Bottom Line
If Microsoft wants to reshape console gaming — and boost the Xbox brand — embracing Windows at the OS level could be the bold move it needs. The hardware wouldn’t just compete with PlayStation or Nintendo, it would become the default PC-for-your-TV.
A true "WindowsBox" wouldn’t just bridge the console-PC divide — it could erase it altogether.
Kyle Orland is Senior Gaming Editor at Ars Technica, covering the business and culture of games since 2012. He once wrote an entire book about Minesweeper.