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Next-Gen Xbox: A Windows 11 Powerhouse with Steam Support Aiming for a 2027 Debut

The vision for Microsoft's next-generation Xbox is becoming clearer, with new details suggesting a radical shift that could blur the lines between console and PC gaming. Following a confirmation from AMD CEO Lisa Su regarding a custom chip codenamed "Magnus" set for 2027, reports indicate the new console could launch as early as that same year, heralding a new era for the platform.

According to a report from Windows Central, the upcoming device is poised to be deeply integrated with Windows 11, introducing three major breakthroughs. The next Xbox is expected to feature backward compatibility with the entire library of previous Xbox games, the ability to switch to a full Windows desktop environment, and groundbreaking support for third-party PC stores like Epic and Steam. This strategy aims to create a hybrid "Windows Gaming Console."

 

Next-Gen Xbox: A Windows 11 Powerhouse with Steam Support Aiming for a 2027 Debut

 

Internally, Microsoft is reportedly positioning this "Gen-10" Xbox not just as a console, but as a gaming PC powered by Windows 11 that retains all the features and compatibility of a traditional Xbox. The core objective is to allow the device to run not only existing and legacy Xbox titles but also the vast ecosystem of Windows applications and PC games. The ASUS ROG Ally is cited as an early implementation of this concept, where an Xbox interface is layered over Windows 11 to create a console-like experience on a handheld PC.

 

Next-Gen Xbox: A Windows 11 Powerhouse with Steam Support Aiming for a 2027 Debut

 

While the 2027 timeline is an optimistic target, it is not a firm commitment. The project's progress is highly dependent on further improvements to the Windows 11 experience and the seamless optimization between hardware and software. Microsoft's primary goal is to ensure a mature and polished console experience at launch. Details on pricing and final form factor also remain undecided, influenced by factors like global tariffs, component costs, and supply chain volatility.

 

Next-Gen Xbox: A Windows 11 Powerhouse with Steam Support Aiming for a 2027 Debut

 

This ambitious move is part of Microsoft's broader "Xbox Everywhere" strategy, which involves closer collaboration between the Windows and Xbox teams. The goal is to offer players more choice, not only in hardware—with potential for first-party handhelds and collaboration with OEM partners like ASUS and Lenovo—but also in where they purchase and play their games. Epic Games has already expressed its willingness to bring its store to the next-gen Xbox on day one, making the inclusion of Steam a highly plausible scenario.

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