On a related note, I had a thought - If the next Xbox does turn out to be a glorified PC with Steam compatibility, MS still holds a big software advantage: games requiring kernel-level anti-cheat still aren't fully supported on Linux. If they threw together some bundles (free X years of GamePass Ultimate, controllers etc.) and priced it aggresively, then it could be a compelling alternative to the Steam Machine.
You could always install Windows on this, it is a pity they don't have two M.2 slots and have limited I/O like lack of USB 4 port and audio jacks. I think the problem with this is releasing at a time when you would start to hope for a successor to come out as it is really hardware that was available in Q1 2023. They are kind of taking on Nintendo's hardware playbook recycling old technology and releasing it many years later. They probably could have released it at a lower price in 2023 than they might do in 2026 due to recent rise of component prices and it would have been more of a compelling device back then. It does have compact nature going for it, like the design of it. It is shorter than even an S25 Ultra for context. Always wondered why with so many OEMs, so many choose to make large heavy devices with poor cooling and noisy fans when they could simplify it a lot and release a much better device whilst improving their margins significantly at the same time.
This kind of device should hopefully mean more devices like this will be released soon kind of like how the Steam Deck got more people into this market and Valve has already hinted at partners. I don't see it running out of steam like last time they released this kind of device. I would like to see Valve take same approach for their next generation devices as Sony are doing for PS6, make handheld with smaller SoC and also release a larger SoC for their desktop. Looking very likely a lot of devices will be based on Zen 6 and RDNA 5 (Whatever it ends up being called) in the near future with Xbox coming in first. Maybe Valve can borrow the chip design Xbox will use given they lent their one to Xbox.
Apparently Microsoft are expecting OEMs like Asus and MSI to release the cheaper PC devices whilst the Microsoft one with hardware backwards compatibility will be releasing later in 2027. I think the Magnus chip is taping out this quarter so maybe there is chance of the Xbox PC devices to be talked about at
The Game Awards. Even if they don't then, likely they will start to release more information around launch window of Steam Machine. It is probably going to be three times the performance at similar power level and size but at more than double the price so I think it will be a better value proposition than something outdated like the Steam Machine. It is likely going to offer better performance per watt than anything Nvidia, AMD or Intel have currently on the market with probably only 5080 and 5090 being only new GPUs competitive with it in terms of performance but PCs with them would cost significantly more.
I don't see Microsoft pricing it aggressively as it will look a bargain compared to current PCs but with time, will become less competitive. Only PS6 devices will make it look like a rip-off their hardware as with Sony co-engineering it and making a smaller chip and not needing to sell with a decent margin, they will have a big price advantage. Maybe even less than half or even a third of the cost for not that much slower hardware. Sony could even beat Nintendo in their handhelds for the first time depending on if Nintendo get too complacent. I think even if Microsoft released a device with a smaller GPU in the future, it could be more competitive with the Steam Machine in terms of pricing but will still be more expensive than a PS6 but this time offering lower peak performance. I do wonder what Microsoft are playing at though long term with the more open approach, maybe they will try and challenge Nintendo and PlayStation to take a lower cut like Epic tried to do with Apple.
Anyway, it is not often AMD do a big GPU change so probably would feature all the latest standards that will last a generation without feeling underpowered whilst with the Steam Machine, you will already be struggling with settings tweaks from the get-go. It does pack a reasonable punch for that level of hardware but with level of technology improvements coming in 2026 and 2027, unless Valve update it quite quickly, it will become a harder sell for them. Unlike the Steam Deck with bespoke hardware which was kind of subsidised, this doesn't look like it will be. It is not like prebuilt PCs with more efficient and significantly better GPUs like a 5060 will be that much more expensive than this. In fact, they might be even cheaper especially in the coming weeks. Will be interesting to see how much availability this device will have at launch, if only a limited launch then it could sell out easily. I don't think that would be a good thing if it means general availability is pushed back further for an already aging hardware. I do think this will make a great entry point as low cost option in the future though maybe through Certified Refurbished. As it is, it will be still a great option new as it will be competitive with a lot of gaming laptops and mini PCs in that price range without the noise pollution and a big step up in performance over the Steam Deck for users who mainly use it as a docked PC.
Personally, I think I will rather get an Intel Panther Lake powered handheld than this as that will be cutting edge technology for 2026 than something that is middling even for 2023. If they offered it with an RX 9060, would have been more desirable even if it made the price marginally higher. Oh well, at least there will be a good option for a compact lightweight PC and it will get much better with future iterations. Hopefully Xbox PCs can launch in late 2026 so the wait for a better powered alternative is not too long.
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