Next-Gen Xbox Will Reportedly Run Windows With a TV-Optimised Interface on Top, Support Steam

The next-generation of Xbox consoles will reportedly be similar to ROG Xbox Ally handhelds that run Windows with an Xbox skin on top.

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Written by Manas Mitul | Updated: 28 October 2025 16:44 IST
Highlights
  • The next-gen Xbox will reportedly launch in 2027
  • The console will likely support Steam, Epic Games Store and other stores
  • Microsoft announced that Halo games will be coming to PlayStation

Xbox president Sarah Bond has said the next Xbox would be a "very premium" experience

Photo Credit: Bloomberg

Microsoft has hinted in recent months that its next console will be a Windows-centric device with an open platform. Now, a new report claims that the next-generation Xbox will indeed run Windows with a console interface optimised for televisions on top, much like the newly launched Xbox-branded handhelds. The Windows OS will allow the console to run rival third-party storefronts like Steam and Epic Games Store, in addition to the Microsoft store.

Xbox has changed tack regarding its first-party games over the past 20 months, transitioning, in essence, from a platform holder with exclusive titles to a third-party publisher releasing games across platforms. Since Microsoft announced four of its first-party games for PlayStation and Nintendo in February 2024, several exclusive Xbox titles have launched on PS5.

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The Xbox parent is bringing some of its biggest franchises like Gears of War and Forza Horizon to PlayStation. Last week, the company finally confirmed that Halo, its flagship franchise that helped put the original Xbox on map, would make its way to Sony's console next year when a remake of Halo: Combat Evolved launches on PC, Xbox Series S/X, and PS5.

Next Xbox to Run Windows

With console exclusives out of the picture, Microsoft has said its Asus-made Window gaming handhelds, the ROG Xbox Ally, would guide the thinking behind the next-generation of Xbox home consoles. A new Windows Central report sheds light on the Windowed future of Xbox, claiming that the next-gen Xbox console will run “full-bore” Windows, with a console-style interface on top optimised for TVs.

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The same approach is seen in ROG Xbox Ally and Xbox Ally X handhelds, which run Windows 11, but boot directly into the new Xbox full-screen experience interface. Microsoft will reportedly gather feedback on the handhelds' Windows-with-Xbox-skin experience before optimising it for the next Xbox console on TV.

The ROG Xbox Ally handhelds run Windows 11 with the Xbox full-screen experience on top
Photo Credit: Microsoft

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The Xbox interface on Windows will allow Xbox users to exit out to full Windows experience and access other storefronts like Steam, Epic Games Store, and Battle.net, among others. Users would reportedly be able use the full suite of Windows features, as well.

According to the report, however, the Windows experience will be optional, and users will be able to stay in the Xbox ecosystem if they want to. The onboarding and boot experience will be close to what users get on a console, the report said.

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Games, Multiplayer on Next Xbox

Additionally, the next Xbox will reportedly be backwards compatible with all games present on the Xbox Series S/X library. The games will run natively via the Xbox interface — it's unclear how the split between native PC titles and Xbox games will be handled though. Bear in mind that the Windows-based ROG Xbox Ally can only run PC games natively, either through the Xbox app on Windows or through other platforms like Steam. Users can play Xbox titles on the device via Xbox Cloud Gaming.

Furthermore, the report claimed that Microsoft's next Xbox console would tear down the paywall for multiplayer, a standard console practice that was ironically started by Microsoft with Xbox Live Gold on the Xbox 360. Currently, console players on both Xbox and PlayStation have to subscribe to Game Pass and PlayStation Plus, respectively, to play online multiplayer. These plans, however, could change before the next-gen Xbox launches.

Microsoft has not officially confirmed its plans for the next-gen Xbox beyond the fact that the console would not be tied to a single platform and storefront. Xbox president Sarah Bond has hinted that the console will be a more Windows-centric device, with the aim to make Windows the “the number one platform for gaming.”

Last week, in an interview with Mashable, Bond said the next-gen Xbox would be a “very premium, very high-end curated experience”, suggesting the console could be the most expensive Xbox yet. Bond also said that some of Microsoft's thinking for the next Xbox could be seen in the recently launched ROG Xbox Ally handhelds.

Both the next Xbox and the PS6 are believed to be targeting a 2027 release.

 

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