Microsofts Subtle Xbox Next-Gen Reveal: Unnoticed Insights from Asus Collaboration

After announcing a partnership with Asus, Microsoft has subtly revealed its plans for a new generation of Xbox. The portable consoles known as Asus ROG Ally may serve as a testing ground for Microsoft to explore the further integration of Xbox and Windows, according to reports from The Verge.

These next-generation Asus portable consoles run on Windows, but they don’t boot into the full desktop interface—instead, users are greeted with the Xbox environment, providing access to their game library which includes titles from Steam as well as various applications like Discord. Microsoft explicitly states that «this is Xbox,» albeit in a form that’s different from traditional consoles.

The company has reportedly «suspended» its own portable console development, and some unofficial sources suggest it may have even shut it down entirely. Microsoft is expected to eventually release its own Xbox version, but simultaneously, PC manufacturers, including Asus, will be producing devices categorized as next-generation Xbox consoles.

With the launch of the Asus ROG Xbox Ally and Xbox Ally X, Microsoft has openly embarked on the creation of an updated Xbox software platform. Phil Spencer, head of Microsoft’s gaming division, made it clear in a corporate Xbox podcast that collaboration between the Windows and Xbox teams has reached unprecedented levels.

To achieve their goals, Microsoft must overcome a significant challenge: the current iteration of the «portable Xbox» is unable to run most games from the original Xbox series. Essentially, as a compact computer running Windows, it only supports PC games.

Microsoft’s Xbox Play Anywhere program allows users to purchase a game for Xbox and receive a PC version as well, but this initiative currently includes only a limited selection of titles. When Microsoft itself is the developer, this is not an issue, as the company tends to release titles for both Xbox and PC. However, titles like Grand Theft Auto VI will initially require streaming from a console, as the PC version has not yet been announced.

Microsoft’s new strategy aims to address this problem by ensuring access to Steam games for PC and even PlayStation games on these «portable Xbox» devices, a point the company will likely emphasize.

In the long term, Microsoft hopes to tackle this challenge through emulation. In early 2024, Sarah Bond, president of Microsoft Xbox, assembled a team tasked with preserving games and ensuring backward compatibility. However, before titles for the original Xbox, Xbox 360, and modern Xbox consoles can be emulated on PC, there are significant technical and licensing hurdles to overcome.

While emulation solutions are still in development, Microsoft is bridging the gaps through streaming via Xbox Play Anywhere and Xbox Cloud Gaming. The Microsoft Xbox app on PC simply displays the games that the user has recently played, launching them directly, whether they’re native versions or streamed from the cloud.

It’s unlikely that Microsoft would undertake such extensive work with Windows and Xbox solely for the smooth functioning of software on portable devices. Instead, the company seems to be seeking greater control over console functionality and user interfaces across different hardware to streamline the sales of Game Pass on various platforms.

The competition in the portable console market, spurred by Valve’s introduction of SteamOS, continues, but this is just one battle in a much larger war.

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[Source](https://www.theverge.com/notepad-microsoft-newsletter/686101/microsoft-xbox-next-gen-console-handheld-hints-notepad)