Microsoft is planning something radical for the next Xbox console. According to a major report from Windows Central’s Jez Corden, the company’s next-generation gaming hardware will blur the line between console and PC entirely. The device will run full Windows with a console-style interface layered on top, give you access to your complete Xbox library, and potentially eliminate the multiplayer paywall that’s existed since 2002.
This isn’t just a minor hardware refresh. Microsoft is fundamentally reimagining what an Xbox console can be, and the ROG Xbox Ally handhelds that launched recently are serving as a testing ground for this ambitious vision. If the company pulls this off, the next Xbox could solve one of gaming’s longest-standing frustrations by letting you play everything in one place without compromising the couch gaming experience.
A Windows PC That Feels Like a Console
The core concept is straightforward but revolutionary. The next Xbox will be a curated Windows gaming PC optimized for the living room. When you turn it on, you’ll see a TV-friendly, controller-navigable interface similar to what current Xbox consoles offer. This interface is essentially the Xbox Full Screen Experience that debuted on the ROG Xbox Ally handhelds.
But here’s where things get interesting. Just like on the ROG Ally, you can exit out to full Windows whenever you want. That means you can install and run Steam, Epic Games Store, Battle.net, the Riot Client, or any other PC gaming platform. You’re not locked into the Microsoft ecosystem at all. Want to play PlayStation’s PC ports like God of War or Spider-Man? Go ahead. Interested in MMOs like World of Warcraft or Final Fantasy XIV? They’ll work too.
Your Entire Xbox Library, Natively
One of the most significant aspects of this next-generation console is backwards compatibility. Microsoft is developing new emulation technology that will allow the system to run your entire Xbox console library natively. We’re talking about games from the original Xbox, Xbox 360, Xbox One, and Xbox Series X/S, all playable on this new hardware.
This is different from how the ROG Xbox Ally works. Those handhelds can only play PC versions of games because they’re essentially Windows gaming laptops in handheld form. The next Xbox console will have the ability to run actual console games, which means your existing digital library will transfer over seamlessly. You won’t need to repurchase games or hope that PC versions exist.
Free Online Multiplayer Is Coming
Perhaps the most consumer-friendly change coming to the next Xbox is the reported elimination of the multiplayer paywall. Microsoft is seriously considering making online multiplayer completely free on this new console. That means no Xbox Live Gold requirement and no need for Game Pass Ultimate just to play your paid games online.
This would be a massive shift for the industry. Microsoft pioneered paid online gaming when Xbox Live launched in 2002 for $49.99 per year. Sony followed suit with PlayStation Plus requiring a subscription for online play on PS4, and Nintendo eventually adopted the model with Switch Online. Now Microsoft appears ready to abandon the practice it created over 20 years ago.
Why the Change Makes Sense
The decision to drop multiplayer fees isn’t altruistic, it’s strategic. Since the next Xbox will essentially be a PC running Windows, charging for online multiplayer becomes problematic. PC gamers have never accepted paying for basic online functionality, and trying to enforce that on what’s technically a Windows machine would be nearly impossible to justify.
Additionally, this move could attract a massive influx of new users who’ve been frustrated by subscription requirements. When the competition still charges for online play, Microsoft offering it free becomes a significant competitive advantage. The company clearly believes Game Pass subscriptions and game sales will generate more revenue than maintaining the Xbox Live Gold model.
What About the Xbox Handheld?
Interestingly, Jez Corden’s report also revealed that Microsoft still plans to make its own first-party Xbox handheld eventually. The company recently partnered with Asus to release the ROG Xbox Ally handhelds instead of launching their own device, but this was apparently a temporary decision rather than a permanent abandonment of handheld ambitions.
According to Corden’s sources, Microsoft sidelined its own Xbox handheld plans to go to market with the ROG Xbox Ally partnership first. This allows them to gather feedback on the experience and refine the software before investing in their own hardware. The lessons learned from the Ally will inform both the next home console and an eventual Microsoft-made handheld down the line.
The ROG Ally as a Test Bed
The ROG Xbox Ally handhelds serve as a crucial preview of Microsoft’s future hardware strategy. These devices launched in October 2025 with the Xbox Full Screen Experience interface that will power the next console. Players can boot directly into a console-style interface, navigate their games with a controller, and switch to full Windows when needed.
The feedback Microsoft gathers from Ally users will directly influence how the next Xbox console functions. Are people actually exiting to Windows regularly, or do they stay in the console interface? What features are most important? How does performance scale? All of this data helps Microsoft refine their approach before launching a flagship home console.
Technical Specifications and Performance
While specific technical details remain scarce, we know Microsoft is partnering with AMD on custom silicon for this next-generation hardware. The goal is to deliver a premium gaming experience that’s still more cost-effective than building an equivalent gaming PC yourself.
Current-generation games will reportedly receive significant boosts on the new hardware through AI-powered technologies like Auto Super Resolution and next-generation frame generation techniques. This suggests Microsoft is leveraging machine learning to improve performance and visual quality beyond what raw hardware specs alone could achieve.
The AMD Partnership
Microsoft’s continued partnership with AMD is significant. AMD has powered Xbox consoles since the Xbox One in 2013, and that relationship appears set to continue. The custom chips AMD creates for Xbox balance performance, power efficiency, and cost in ways that off-the-shelf PC components don’t.
For the next Xbox, AMD is likely developing silicon that can efficiently run both native Xbox console games and Windows PC titles. That’s a complex engineering challenge that requires close collaboration between the two companies. The success of this partnership will determine whether Microsoft can deliver on the ambitious vision Corden describes.
When Can You Buy It?
The next-generation Xbox console is rumored for a 2027 launch, though nothing has been officially confirmed. That’s still a couple of years away, which gives Microsoft plenty of time to refine the experience based on ROG Ally feedback and finalize the hardware specifications.
The extended timeline also makes sense considering the Xbox Series X and Series S only launched in November 2020. A 2027 release would give the current generation a seven-year lifespan, which is fairly standard for console cycles. Microsoft needs that time to ensure this radical new approach actually works before committing to full production.
What Happens to Current Consoles?
One important clarification from the report is that the free online multiplayer only applies to the new console. Xbox One and Xbox Series X/S owners will still need Xbox Live Gold or Game Pass Ultimate to play paid games online. Microsoft isn’t retroactively changing the business model for existing hardware.
This makes sense from a business perspective but could frustrate current Xbox owners who feel they’re being pushed toward upgrading. However, the promise of full backwards compatibility means your existing library won’t be wasted when you eventually make the switch.
Industry Implications
If Microsoft successfully executes this vision, it could fundamentally reshape the console market. Sony and Nintendo have maintained relatively closed ecosystems where you can only play games approved for their platforms. Microsoft is taking the opposite approach by making Xbox hardware a gateway to all of PC gaming plus the exclusive console library.
This strategy aligns with Microsoft’s broader gaming philosophy under Phil Spencer’s leadership. The company has emphasized that they want people playing games wherever they want, whether that’s on console, PC, mobile through cloud gaming, or even PlayStation and Nintendo platforms for certain titles. The next Xbox takes that philosophy to its logical conclusion by creating hardware that doesn’t restrict your choices.
The Risk Factor
Of course, this approach carries significant risks. Console gaming traditionally succeeds because it’s simple and curated. You buy the box, plug it in, and games just work. Introducing Windows complexity could alienate casual players who don’t want to deal with PC gaming’s quirks like driver updates, compatibility issues, and store fragmentation.
Microsoft needs to ensure the console experience remains seamless and user-friendly even with Windows running underneath. If the average player never needs to see Windows and can enjoy all their games through the console interface, this could work brilliantly. If people constantly encounter PC-style problems, it could be a disaster.
FAQs
When will the next Xbox console be released?
The next-generation Xbox console is rumored for a 2027 release, though Microsoft hasn’t officially confirmed any timeline. This would give the Xbox Series X and Series S a seven-year lifespan, which is typical for console generations.
Will the next Xbox really run Windows?
Yes, according to Windows Central’s report, the next Xbox will run full Windows with a console-style interface layered on top. You’ll be able to exit to the Windows desktop and install any PC application or game store you want, similar to how the ROG Xbox Ally handhelds work.
Can I play my existing Xbox games on the next console?
Yes, Microsoft is developing new emulation technology that will allow the next Xbox to run your entire console library natively. This includes games from the original Xbox, Xbox 360, Xbox One, and Xbox Series X/S. Your digital library should transfer over seamlessly.
Will online multiplayer really be free?
Microsoft is reportedly considering eliminating the multiplayer paywall for the next Xbox console. This means you wouldn’t need Xbox Live Gold or Game Pass to play paid games online. However, this change would only apply to the new console, not existing Xbox One or Series X/S systems.
Can I play Steam games on the next Xbox?
Yes, since the console will run Windows, you’ll be able to install Steam, Epic Games Store, Battle.net, or any other PC gaming platform. You can play games from those stores on the Xbox hardware, including titles that aren’t available through Microsoft’s ecosystem.
Will Microsoft still make their own handheld?
According to Jez Corden’s report, Microsoft still plans to make its own first-party Xbox handheld eventually. The ROG Xbox Ally partnership with Asus was meant to gather feedback first before Microsoft invests in developing their own handheld hardware.
How much will the next Xbox cost?
No pricing information has been revealed yet. Microsoft is working with AMD to create custom silicon that delivers a premium experience at a more affordable price point than building an equivalent gaming PC, but specific prices won’t be known until closer to launch.
Conclusion
Microsoft’s vision for the next Xbox represents the most ambitious evolution in console gaming since the original PlayStation brought CD-ROMs to living rooms. By merging the simplicity of console gaming with the openness of PC gaming, Microsoft is attempting to give players the best of both worlds. The promise of your entire Xbox library plus full access to PC gaming platforms like Steam, combined with potentially free online multiplayer, addresses many of the frustrations that have plagued gamers for years. However, the success of this strategy depends entirely on execution. The console experience needs to remain simple and reliable while the Windows functionality stays tucked away until you actually want it. The ROG Xbox Ally handhelds will provide crucial feedback over the next couple of years as Microsoft refines this approach. If they get it right, the next Xbox could redefine what a gaming console can be. If the complexity overwhelms the simplicity, it could alienate the core audience that made Xbox successful in the first place. Either way, Microsoft is clearly willing to take bold risks to remain competitive in an industry where they’ve steadily lost ground to Sony and Nintendo. The 2027 launch can’t come soon enough for gamers eager to see whether this ambitious vision becomes reality or joins the long list of promising gaming ideas that didn’t quite work out as planned.