New Xbox could support PC stores – but possibly at a steep price

Microsoft’s next Xbox could signal a major shift in direction. Back in mid-2024, insider Jez Corden suggested the upcoming console might become an open system. Now, new information seems to support that claim. A leak from KeplerL2 on the NeoGAF forum indicates the console could support PC stores such as Steam and GOG – a move that, if true, would further blur the line between console and PC gaming.

The leak points to AMD’s upcoming “Magnus” APU, expected to power a range of Xbox devices – from traditional consoles to Xbox-branded PCs. While only the console version is reportedly set to support full backwards compatibility with older Xbox titles, running PC games on the system should still be technically feasible. According to KeplerL2, Steam and GOG games could run on the Xbox through a virtual machine setup.

The leaker doesn’t anticipate major legal hurdles but sees the real challenge in the business model. Microsoft typically takes a 30% cut on each game sold through its Xbox Store, the same standard rate used by Sony and Nintendo. This revenue share is crucial, since console makers often sell hardware at little to no profit and rely on game sales and subscriptions to offset the difference.

If players bought their games through Steam or GOG instead, the revenue would go to those third-party platforms. Without its usual 30% cut, Microsoft would have to recoup hardware costs directly – most likely by raising the console’s retail price. In the worst case, KeplerL2 suggests the new Xbox could end up costing nearly twice as much as Sony’s PlayStation 6.

These claims have sparked lively discussion on NeoGAF. Many users see a VM-based solution as realistic, yet there’s skepticism since Microsoft would have to give up its usual margins.