Since Microsoft unleashed its new 'This is an Xbox' marketing campaign earlier this month, there's been lots of speculation about what this means for the future of Xbox hardware - but a well-known industry analyst has played down the idea of Microsoft ditching consoles anytime soon.
Circana's Mat Piscatella — who regularly updates us on gaming stats in the US — recently took part in an online Q&A about the industry at large. When asked about Microsoft potentially leaving the 'dedicated hardware market', this is what he had to say:
"If you look at Microsoft's earnings, Xbox as a whole appears to be doing pretty darn well, even with the recognized and acknowledged challenges in the dedicated hardware space. Whether something is working or not depends to a large extent on what the internal goals are. There's probably some room to debate here, as the goals may have shifted around recently given some of the surrounding reporting.
Could Microsoft leave the hardware market? I mean I guess it could but I don't see that happening. What I would believe to be the more likely approach would be the creation of an Xbox front end for portable PC Steam Deck-type devices and trying to go the OEM route so 3rd party manufacturers could make Xbox-type devices as well as what Microsoft produces. Like Windows PC and Surface devices. Would it work? Who knows."
This is just an opinion of course — albeit an informed one — but really, only Microsoft knows what the next steps are for its Xbox hardware business. Clearly, the team wants to branch out and market the brand as a platform, but that doesn't necessarily mean consoles are going anywhere anytime soon.
Still, this is an interesting take, and we're definitely curious to see where Microsoft goes next with all of this. We know for sure that a high-end console and a handheld of some sort are in the works - but what shape they'll both take, and when exactly they're set to arrive, is anyone's guess at this stage.