It sounds like that's the plan:
https://news.xbox.com/en-us/2026/03/11/project-helix-buildin...
Windows stopped feeling like it meant PC a long time ago, and there's a major risk of the whole Xbox identity disappearing into the PC computing. Probably a conversation for another day but when everything is an Xbox, nothing is an Xbox, and when an Xbox is a PC it might as well be fading away Marty McFly style from our plane of existence.
I suppose what would really impress me is a Roku-style omnivore approach that gives a first class console-style experience and interface to Epic, Steam, Itch.io, GOG and of course Xbox.
It's not automatic or perfect but it does work.
A common failure is the controllers. It’s hard to get a combo of OS stack, Bluetooth chip, and controller that Just Works like they do on consoles. Something always needs fiddling-with.
Video or audio out are also often a problem. Glitched audio or audio mode-switching, trouble switching video modes, screwed-up HDR, all kinds of stuff. Maybe fine on your monitor with headphones. Not fine on a TV or projector with 5.1+ audio receiver.
The UIs also bug out or crash more often, and usually aren’t that great at being a TV UI in the first place (even Steam IMO is worse than most consoles, as far as the Big Picture UI)
It also gives devs a stable target with a known market, which is nice for both the devs and the owners of the devices.
Microsoft can also hopefully target a smoother user experience than a typical windows PC provides. They want this to be a valid console competitor, but just slapping xbox brand on a windows PC isn't enough to do that.
Having a first party hardware device to target for PC games can also help devs with having a clear performance target for PCs, similar to how the Steam Deck is currently a minimum spec performance target for a lot of games.
This kind of already exists with the "Deck Verified" label on Steam games.
That said, this sounds similar to Valve's upcoming Steam Machine and I'd much prefer that to be the standard console/PC hybrid to keep the Linux gaming momentum going, and perhaps one day I can ditch Windows for good.
But the really nice thing about the concept of treating a PC and console as the same platform is that you don't have to worry about why people might prefer to go the route of buying the console. You can go with a regular gaming PC if that's what you prefer and your library will have all the same options.
1. Console-like living room ready experience. It's surprisingly hard to get a PC made with off-the-shelf parts to integrate cleanly with a home theater system (think features like HDMI CEC, One Touch Play, etc). A custom SoC can solve this, something we are seeing Valve also do with the Steam Machine.
2. As the target hardware for basically all Xbox games, end-users who don't want to fret over system specs can easily just buy this and know they are getting the intended experience.
Whether that's enough to move units remains to be seen.