IT Home News, February 8th - The outline of the next-generation Xbox console is becoming clearer. Lisa Su confirmed that the custom chip codenamed "Magnus" will be available in 2027, suggesting that the next-generation console may be released as early as 2027.
According to a report by Windows Central today, the device will deeply integrate with the Windows 11 system, achieve three major breakthroughs, reshape the boundaries between consoles and PCs, and is expected to usher in a new era for "Windows gaming consoles":
According to reports, Microsoft's internal positioning of the "tenth-generation Xbox" (referred to as Gen-10 in the article) is undergoing a significant change: it is more like a gaming PC running Windows 11, but at the same time has the full features of an Xbox console and backward compatibility.
Windows Central believes that the core goal of this design is to enable the next-generation Xbox to run existing Xbox One, Xbox Series X|S and previous Xbox games, as well as various programs and PC game content from the Windows ecosystem.
As a reference, the ASUS ROG Xbox Ally is an "early version" of this concept. In this collaborative model, Microsoft created a "Windows handheld" environment that is closer to a traditional console by overlaying the Xbox full-screen interface on top of Win11 and cutting unnecessary system processes.
Even without Xbox full-screen mode, Xbox Ally users can still experience full Windows desktop functionality, much like experiencing Linux on Steam Deck, allowing them to use the device as a PC, programming device, or even a music production workstation.
Windows Central emphasizes that the envisioned next-generation Xbox will not only be able to run Xbox games, but will also be able to access PC games from third-party PC stores such as Steam.
Regarding the release date, Windows Central quoted AMD CEO Lisa Su's statement during the earnings call, saying that the development of Microsoft's next-generation Xbox, powered by an AMD semi-custom SoC, is progressing smoothly, with a target launch date of 2027. AMD internally codenames this SoC "Magnus," but this is not Microsoft's internal codename for the entire device.
IT Home reminds you: Microsoft has not made a hard commitment to "2027" internally, because the project's progress highly depends on further improvements to the Windows 11 experience and the optimization of software and hardware synergy. Therefore, 2027 represents the "most likely scenario," and Microsoft's primary goal before then should be ensuring the console experience is sufficiently mature.
Regarding pricing and product form, Windows Central believes there is much speculation about the pricing of the next-generation Xbox, but Microsoft itself has not yet made a decision, mainly due to factors such as global tariffs, component costs, geopolitics, and supply chain fluctuations.
With rising memory costs and US tariffs driving up terminal prices, consumers have become significantly more price-sensitive to these consumer electronics products. Even TV manufacturers like LG have reduced their investment in 8K due to cost issues.
Windows Central also pointed out that even though the next-generation Xbox is positioned at a higher end, it does not mean that existing Xbox Series S users will be quickly "outdated". Microsoft expects the current generation of consoles to have a longer lifespan, and cross-platform and cross-performance tier game development will continue for some time to come.
In addition, Microsoft is also collaborating with OEM partners such as ASUS and Lenovo to integrate "Xbox ecosystem devices" (or "device ecosystem") covering different price points and form factors, similar to the existing two Xbox Ally models.
Windows Central also mentioned that despite opposing rumors in the market, Microsoft still hopes to launch a first-party Xbox handheld console in the future, but at this stage the focus remains on the next-generation Xbox in the traditional console form.
On a broader strategic level, Windows Central believes this could be Microsoft's most aggressive hardware platform attempt in history. Microsoft is pushing for closer collaboration between the Windows and Xbox teams to achieve the "Xbox Everywhere" ecosystem goal, which allows players to choose not only the hardware form factor but also the game store and content distribution channels they use.
Just a few days ago, Epic announced its willingness to bring the Epic Games Store to next-gen Xbox. Given Epic's presence, a simultaneous launch of Steam on next-gen Xbox is a logical next step. Microsoft hopes to expand its user base through cross-platform multiplayer, cross-platform save data, and cross-platform purchases, and plans to reveal more progress on its developer ecosystem at GDC 2026.
In other areas, Microsoft is testing a highlight reel feature on the Xbox Ally X that relies on the NPU to automatically generate shareable videos from player-recorded clips, with a target release date of March 2026. If this feature proves successful on handheld consoles, it may also be rolled out to next-generation Xbox consoles in the future.
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