Microsoft to merge Xbox and PC gaming

Xbox is struggling to keep pace with PlayStation and Nintendo, while PC gaming remains strong. With its next console, Microsoft will try to bring the two gaming worlds together.

Many people are asking; where is Xbox? The consoles have started disappearing from store shelves in several countries.

This follows Microsoft's drastic decisions to release exclusive Xbox games on PlayStation 5 and to open up Xbox games on Smart TVs and other devices through game streaming under the 'This is an Xbox' slogan.

Microsoft has now started removing 'This is an Xbox' from its websites.


Next Xbox runs PC games
Microsoft insists that the Xbox console is not dead. The next Xbox is being developed under the codename 'Project Helix', which will be put into the hands of game developers in 2027.

- "Project Helix is designed to play your Xbox console and PC games, delivering leading performance and ushering in the next generation of console gaming," said Jason Ronald, VP of Next Generation, Xbox.

It has been a long time coming. Xbox One and Xbox Series are built on x86 chip architecture – classic PC hardware. They can already run PC games, but those games naturally have to be optimized for TVs and controllers. Microsoft is now taking the next step by officially encouraging it.

The strategy resembles the one Valve is pursuing with the delayed Steam Machine console.

One challenge is that more and more PCs are moving to ARM architecture. Games developed for x86 do not run on ARM, and vice versa. x86-to-ARM conversion systems exist, but they can significantly impact performance, generally do not work with anti-cheat and DRM (copy protection), and are not always stable.

Microsoft had already said that the next Xbox will feature an AMD chip and will not be locked to the Xbox store, and that it will be very premium, very high-end.

The company now adds that it will feature a custom AMD SoC with "next generation of DirectX and FSR", meaning AI upscaling and frame-generation in games. They call it FSR Diamond. The company also talks about 10 times better ray tracing, including path tracing.

Rumor has it that next-generation game consoles are planned for 2027, but the DRAM/NAND crisis could delay the rollout.


Xbox Mode on Windows 11 PCs
As part of the new strategy, Microsoft will expand 'Xbox Mode', known from ROG Xbox Ally, to all Windows 11 PCs. This will happen already in April 2026 ahead of the launch of the next Xbox.

- "After debuting an early version with the ROG Xbox Ally handhelds, today I’m excited to share that we are bringing the same innovation to Windows 11 with Xbox mode that begins rolling out in April, starting with select markets. Xbox mode lets players seamlessly switch between productivity and play, with a familiar full screen and controller optimized Xbox experience while embracing the openness of Windows," said Jason Ronald.


This includes desktop PCs, laptops, and tablets running Windows 11.

Microsoft is trying to bring game developers on board with the idea. They highlight that more than 1500 games are already 'Xbox Play Anywhere', meaning they can be purchased once and played across multiple platforms. It is worth noting, however, that many PC games are designed for keyboard and mouse – not controllers.


Xbox classics on the way
Finally, Microsoft announces that it has been working on making a old, iconic Xbox games compatible with current consoles and PCs.

- "And, we’re committed to keeping games from four generations of Xbox playable for years to come. As part of our 25th anniversary later this year, we’ll be rolling out new ways to play some of the most iconic games from our past," said Jason Ronald.