Microsoft is clearly shifting gears in its approach to the Xbox brand, making a $1,000 console hard to justify.
They are not creating just another console because they want to transform the Xbox identity completely.
That starts with a sweeping multi-year partnership with AMD, where the focus isn’t just on consoles but on a full ecosystem of devices, from handhelds to cloud services to PC-compatible hardware.
Xbox president Sarah Bond has stressed that their next-gen platform won’t be tied to one device or storefront, which already signals a break from the traditional console model we’ve known for decades.
Is Xbox Even a Console Brand Anymore?
Microsoft doesn’t see Xbox as just hardware anymore—it’s a whole platform now.
This new direction also shows in Microsoft’s growing interest in third-party devices like the ROG Xbox Ally handhelds. These aren’t typical Xbox consoles because they run Windows, support multiple PC libraries, and connect with Xbox services.
When focusing on hardware as a vessel for Game Pass and cloud services, it’s tricky to figure out why a $1,000 flagship console makes sense. If you can get Xbox games on your PC, handheld, or potentially a competitor’s system, what’s the point of shelling out that much money for another box?
Does a $1,000 Price Make Sense in a Multiplatform Era?
No, it contradicts Microsoft’s effort to make gaming accessible and popular across the board.
Rumors that the next Xbox will cost over $1,000 have sparked even more debate, particularly with Microsoft aiming to end selling consoles at a loss.
That’s a lot to expect with so many platforms, especially since their handhelds might cost up to $900, making them less appealing compared to cheaper options like the Steam Deck or Switch 2.
Steep hardware costs don't make sense if the goal is to expand the player base.
Why Would Anyone Still Buy Xbox Hardware?
That question keeps getting harder to answer, as more Xbox games go multiplatform.
Even more importantly, the content argument is losing weight since Xbox games now appear on PlayStation, Switch, and PC, making owning Xbox hardware less necessary every day.
Game Pass is already available on PC, and Microsoft has openly stated that it would be available on other consoles if given the chance.
So, unless the new Xbox console offers something wildly unique (such as unprecedented graphical fidelity or AI features), it risks being seen as redundant, especially for those who already own a gaming PC or a PS5.
Is Compatibility Enough to Justify the Next Xbox?
It can’t just meet expectations—it has to deliver more than legacy support to justify the cost.
Microsoft promises that new Xbox consoles will support existing game libraries, but that value only goes so far.
If the new system uses Windows and AMD’s x86 architecture, compatibility might be taken for granted.
Any shift to ARM, which is unlikely but still speculated about, would require strong emulation support and introduce even more complexity for developers.
Is Xbox Moving Away from Traditional Consoles for Good?
We’re headed that way because the plan prioritizes scale and availability over exclusivity and raw hardware strength.
Microsoft wants Xbox games to be played everywhere, not just on one console. They’re betting on services like Game Pass and cloud streaming to drive the future.
However, if that’s really the case, an expensive console contradicts that idea. Microsoft might still put out high-end Xbox devices, but its main focus has shifted from hardware to the overall ecosystem.
Unless this next-gen console offers something game-changing, dropping $1,000 on it probably won’t click with the crowd they want.
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