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I am wondering what Xbox are doing, btw, when it comes to hardware.
I ponder if they'll do what they did with Copilot+ PCs, and offload Xbox as a brand to different hardware OEMs. E.g. Dell etc can make an Xbox or Xbox portable, as long as it runs XboxOS, meets the hardware requirements etc.
That way they de-risk the hardware manufacturing flopping but retain the brand and digital sales cut, as they're the only storefront on the devices.
I hope not as it will ruin Xbox.
Update: I’ve heard this is exactly what they’re doing. Xbox will become a brand, gives OEMs and devs minimum Xbox specs, there will be an Xbox compatibility layer in Windows for old games for game preservation.
@GossiTheDog you mean official support for what ever games are playable until series on general windows
@GossiTheDog A standardized Windows gaming PC. Like a DirectX box? Seems like we've come full circle. 
This has been a long time coming and is in line with the Xbox strategy ever since Mattrick's departure.
The latest talk is that the handheld gaming PC market will be their first test case for all of this. The one problem with the Steam Deck is game compatibility on Linux. Microsoft owns Windows, so this is their edge. Gamepass and Steam both on the same Xbox/PC handheld is a winning combo.
@ganonmaster @GossiTheDog think MSX
(Microsoft Xbox, this checks out)
@GossiTheDog with an extra sprinkle layer of AI for no reason whatsoever I’m sure
@dxbmatt @GossiTheDog ai is what will configure the graphics for you and if you pay extra will help you get through the hard parts of the game. I wish I was kidding
@GossiTheDog Just when I was about to write off Windows as a gaming OS, they are doing what they should have obviously done for decades and I'm no longer so sure.
@GossiTheDog so I can use all these flash drives full of 360 games?
@GossiTheDog damn, look at me switching back to PlayStation I guess
@GossiTheDog I'd be on board if it also includes an Xbox shell I can install on custom hardware. Like an "Xbox Mode" for Windows 11, that adapts the shell to work well with an Xbox controller on a TV. A bit like Steam's "big picture mode", but extending to the Start menu, taskbar, settings app, and lock screen so I don't have to use a mouse and keyboard to log into my HTPC or to open apps that aren't listed in Steam.
@GossiTheDog they couldn’t make a phone work, what makes them think they’ll be any better at a portable handheld gaming system 
I suspect that it will be even worse than you're envisioning from the info that's available.
I suspect that they're going to "Google 'Stadia'" it.. turn almost everything into a stream from azure solution, so that they can push subscriptions and continue to lock xbox subscribers (game save) data into their proprietary infrastructure, thus making it harder for people to leave in the future.
Licensed 'consoles' will have minimal local play abilities