What Microsoft should do to stay competitive.

[Chazore]

Bofferbrauer2 said:

Fair warning: My take will probably be a bit controversial.

I think Microsoft should concentrate on PC. This doesn't mean they should drop Xbox as a hardware brand though - but they could do something like they did with their Surface line of tablets and laptops: Create a line of PCs that are specifically designed for couch gaming in a new form factor and possibly with a simplified (and cheaper) version of Windows. They could also bring this even further if they want a make a competitor to the Steam Deck if they also want to make a handheld device. With semi-custom hardware from AMD they could even bring those at prices that wouldn't be possible for normal gaming PCs (as in, more console-style prices), thus growing their brand and market if they would go that route.

That way, they could both support their core business (as in, selling Windows and associated software) and their gaming business all in one go.

And as optional peripheries, I'd offer an external drive that could also read the discs from all previous Xbox consoles and play those titles on that Xbox console, as well as the old Games for Windows Live titles that don't work correctly anymore now.

I don't really find it controversial, because in reality, MS started off on PC, they were the PC brand (they still are with Windows that power most PC's on the planet).

Them focusing on PC means the ecosystem stays refined, stays what it is, what it should have been, rather than two split user bases, where the latter and younger userbase has to have it's branding slapped on the former and older userbase, which previously existed for 2 decades beforehand. It's make more sense for MS to stop bleeding for a plastic box and just go back to where they came from, which would also allow them to put more resources into making a client that's on Steam's level, instead of what we have now, where it's still a nothing burger of a client, still split between itself and a plastic box.

Technically what you're describing is Steam machines, but for Windows, and tbh, I know MS can make that work, because they've done it with their consoles and they know the couch gaming field well enough by now.