The next Xbox console, expected in late 2027, will essentially be a full Windows PC with a TV and controller-first interface. It will allow installation of third-party stores like Steam and Epic. The Xbox Ally handheld offers an early vision of this concept via the Xbox Full Screen Experience (FSE) mode on Windows 11.
However, concerns arise about inheriting Windows' instability. A recent Windows 11 update broke key functions on the Xbox Ally, highlighting potential risks for a console that promises plug-and-play simplicity. While current Xbox consoles offer a polished experience, Windows is known for update issues, telemetry, and complexity that frustrates gamers.
Microsoft faces the challenge of merging its productivity-first Windows OS with Xbox's gaming-first philosophy. With Xbox owning major PC gaming properties like Call of Duty, and competition from SteamOS, Microsoft has strong incentive to improve the Windows gaming experience. The key question is whether Microsoft can deliver a stable, console-like Windows shell in time for the next Xbox launch.