What do you need to know
- A newly discovered Microsoft patent has given us a closer look at the canceled Xbox Keystone streaming console.
- The device was designed to sit under the TV and stream games via Xbox Game Pass.
- Keystone was canceled after Microsoft was unable to price it reasonably.
In 2021, Microsoft announced that it was working on a dedicated streaming device for Xbox Game Pass. Codenamed Keystone, the device was later revealed to be a streaming box that would fit under your TV, cost a fraction of the price of a regular Xbox, and allow you to play Xbox games over the cloud.
Unfortunately, Microsoft seems to have since scrapped plans to ship the Xbox Keystone due to an inability to lower the price to a point where it made sense for customers. Xbox CEO Phil Spencer says the device was supposed to cost around $99 or $129, but the company wasn’t able to achieve that.
That said, we never got a chance to see what the Xbox Keystone looked like. The closest we ever got was a photo by Phil Spencer, which happened to include a frontal view of an Xbox Keystone on a shelf. That’s as many as we’ve ever seen on a console, so far.
Thanks to a patent discovered by Windows Central, we finally get a closer look at the box that Microsoft has conjured up internally. First, the patent reveals that the console had the form of an even square with a circular shape on top, similar to the black circular hole on the Xbox Series S. On the front of the box was the Xbox power off button and the USB port.
There were three additional ports around the rear; HDMI, ethernet and power. On the right side of the console appeared to be a button for pairing the Xbox controller, and on the bottom was a circular “Hello from Seattle” label that the console sat on, similar to the Xbox Series X.
This patent was filed in June 2022, which is around the time the first details of the Xbox Keystone were revealed. Sadly, the Xbox Keystone in this specific form will likely never see the light of day, but at least we now know what it would look like.
We still don’t know much about what was driving things under the hood, including what operating system or firmware it ran. Was it a full Xbox OS with local game support removed? Or did it run something lighter with Xbox Game Pass on top? We don’t know right now and probably never will.
Keystone is gone, but Microsoft isn’t retreating from the cloud
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Microsoft has given up on its Xbox keystone console, at least for now, but that doesn’t mean it’s given up on the cloud.
The biggest obstacles to the cloud now revolve around the business model. Running cloud game servers 24/7 is incredibly expensive, and the $15/month Xbox Game Pass Ultimate alone won’t cover the cost. At least in theory, in-game purchases and direct purchases of games would help improve the business model to some extent, but companies like Apple and Google are working hard to prevent this business model from developing. Microsoft is known to be working on its own mobile game store for Android and iOS, but I have absolutely no idea how to get people to download it. It won’t show up on Android and iOS by default, just like cloud games don’t, and viewers across mobile devices expect easy access like their north star.
A console like the Keystone would help overcome that, but as my colleague Zac Bowden noted above, Microsoft hasn’t been able to lower the price. People would expect a device that can only play streaming games to cost around $99, and that was the goal for Keystone, but component demand (fueled by an AI gold rush) is keeping PC component prices erratically high.
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Instead of a dedicated device, Microsoft told me in LA at the Xbox Games Showcase 2024 that they’re seeing huge growth with TV apps like those that come standard with the Samsung TV Gaming Hub. I’ve heard that Microsoft is experimenting with providing PC cloud gaming through Xbox Cloud Gaming as well, which would increase the catalog. Microsoft is also known for working to allow gamers to bring their existing game libraries to the cloud and purchase cloud games that they will own pending negotiations with third-party publishers and licensees.
The cloud may be additive today, but it’s important that Microsoft keeps its foot in the door in this space. One day, cloud gaming may be indistinguishable from local playback, and platforms like NVIDIA GeForce Now prove that the technology is completely and utterly viable. Xbox Cloud Gaming has some catching up to do on the technical side, but there’s no reason to think they won’t be able to in the future.