This is how I (and seemingly everyone else) has interpreted that part of the statement. Really does feel like they just confirmed the Xbox/PC hybrid but dropped in an assurance that our libraries will be safe. Would make the next Xbox console basically an AMD PC that plays Xbox games + Access to other storefronts. Honestly if they pull this off, it would be fucking amazing, an Xbox console that has full backwards compatibility and access to multiple PC Storefronts? Yeah, day one easily. Now hopefully some people can chill the fuck out, Lol. New console confirmed, BC confirmed.

Very happy they've came out and just confirmed their plans and put to bed a lot of doom speculation.

...and just like that, the ebb and flow of the battlefield shifts into a new front...

War is not for the weak

PC with the OS of Xbox, the ease of use of consoles, with access to Steam, PC exclusives, PS exclusives, Game Pass, and my Xbox 360/Xbox One library (though that will definitely be digital only but I'll take it) sounds like a dream. And basically eliminate every single fear I could think of about the future of my Xbox library, because it would all be PC now.

If Sarah pulls this off then she'll instantly become the next CEO of Microsoft Gaming

Microsoft’s next-gen Xbox has an AMD chip inside and is "not locked to a single store." Microsoft just revealed that it has signed a multi-year partnership with AMD for a next generation of Xbox across PC, console, and cloud. Full details 👇 www.theverge.com/news/688407/...

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— Tom Warren (@tomwarren.co.uk) 17 June 2025 at 18:29

Parris: "yes I have as Microsoft owns the most used OS globally so why wouldn't you bring your full Xbox experience to the platform used by billions of people" — Bluesky

Parris: "AMD powering the next generation of Xbox hardware isn’t a surprise but my excitement is the merger of the Xbox experience with Windows and bringing backwards compatibility to PC I can see a day (future!) where any Windows device is an Xbox" — Bluesky

Excited to continue our long term partnership with
AMD on the next generation of Xbox consoles.

Advancing the state of the art in silicon, rendering, AI, and immersive gameplay experiences, all while maintaining compatibility with your Xbox library.

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— Jason Ronald (@jronald13.bsky.social) 17 June 2025 at 18:31

Two more things would need to be addressed.

- Paying for Xbox Live would surely have to go, as Steam offers online play for free, but that would mean Xbox Core or w/e it is called would need to go as well, or change into something else.
- Game Pass Console and Game Pass PC would have to merge, it would be nice to just have "Game Pass" and "Game Pass Ultimate"

With that, it makes you wonder how the Microsoft Store will work since there's the PC version and the console version. How will they work if they're both available on one device?

That's already on Xbox consoles. There's at least a handful of games with Xbox One and Xbox Series versions 

There's still a lot of PC only games on the Microsoft Store on Windows though. Hell, Forspoken, a game that never came to Xbox consoles is available on the Xbox app on PC lol

Not to mention, the Xbox app is PC versions of games. So I'm curious how that will work.

-Edit-

With 2026 being the 25th anniversary of Xbox, I wonder if they announce the Xbox console next year or at least talk about it some more, it doesn't have to be announced at the June showcase, they can focus on the games first such as Halo, Gears, Forza and Fable but then at the end of the celebration (which would be November 11th) they could perhaps announce the new console, or wait until TGA's in December. It alongside a Halo CE Remake would be a brilliant way to cap off the 25th celebrations.