I mean, Microsoft didn’t invest in the whole Xbox PC experience for nothing, so I fully believe the next generation of consoles will basically be Windows computers running that system. The main issue with this strategy, though, is the games. If it’s a PC, it can run Steam, GOG, and EGS, which means users will have almost no reason to buy their games through the Xbox app.
So Microsoft is in a bit of a pickle here, because the traditional strategy of selling the console at a loss and making the money back through software and accessories just won’t work. There’s also the manufacturing cost to think about. Will they commission a fully custom APU from AMD for this project, or just use something that already exists?
The first option is nice because they can tune it for the price and performance they want, but it requires a lot more work and costs more in R&D. The second option, on the other hand, puts them in direct competition with regular PCs and especially Mini-PCs that could be running the exact same hardware.