Microsoft is developing a high-end, Windows-based Xbox console by 2027, blending console and PC features, with potential Steam support and a $800–$1,000 price tag.

Xbox President Sarah Bond has confirmed the next-generation console is in development as a premium, high-end, curated experience, potentially blending console and PC features inspired by the ROG Xbox Ally handheld. While details remain limited, the system may run on Windows, support third-party stores like Steam, and offer strong performance with backward compatibility. Expected around 2027, it could cost between $800 and $1,000, reflecting higher hardware costs and a shift toward a niche, high-performance market. Microsoft aims to differentiate through seamless ecosystem integration and Game Pass, though software usability and pricing remain concerns.