Microsoft’s Next-Gen Xbox Sounds Ambitious – But We’re Not Impressed

Microsoft has officially announced its next-generation Xbox platform, developed in close partnership with AMD. The project spans consoles, handhelds, PC, cloud gaming, and accessories, tied together under a unified Xbox experience, but no longer limited to a single device or store.

Xbox president Sarah Bond described the new vision as a platform that’s always with you, “not locked to a single store or tied to one device.” The system will be based on Windows and aims to deliver greater flexibility in how and where players access games.

At first glance, the vision sounds bold. But we’re not impressed.

The announcement raises more questions than it answers. What exactly is Xbox now? It’s not just a console. It’s not just Game Pass. It’s not just a PC. Microsoft seems to be building a platform that wants to be everything, but risks becoming too unfocused in the process. There’s a fine line between flexibility and fragmentation, and right now, Xbox feels like it’s being pulled in too many directions without a solid identity to hold it together.

One of the biggest concerns is the use of Windows as the foundation for the new Xbox experience. For hardcore users, this might seem like an opportunity. But for many players, it’s a red flag. Windows is complex, bloated, and not known for its plug-and-play simplicity. Frequent updates, system clutter, and performance inconsistencies are hardly appealing in a gaming context. And while Microsoft presents this shift as openness and freedom, it’s likely to frustrate more casual gamers who simply want a system that works out of the box.

The open platform approach also opens the door to something else: more hardware. By removing the “one console” limitation, Microsoft can now release more devices under the Xbox brand—handhelds, streaming sticks, hybrid units, accessories, and more. All of this makes sense from a monetization perspective. But it also dilutes the Xbox identity, which was once built on simplicity and consistency.

Meanwhile, competitors like Nintendo and Sony continue to stay focused. Nintendo evolves its hardware slowly and clearly, working with NVIDIA and refining a distinct gaming experience. Sony maintains the strength of the PlayStation brand through clear product positioning, exclusive titles, and strong ecosystem cohesion. That clarity is a strength, especially as the gaming landscape grows more crowded and fragmented.

One part of Microsoft’s announcement does stand out: the expanded partnership with AMD. As a co-engineering partner, AMD is helping build the chips that will power everything from consoles to handhelds to cloud systems. It’s a smart move, and it reinforces AMD’s position at the heart of consumer tech innovation.

From an Elliott Wave perspective, Microsoft isn’t part of our regular stock membership coverage, but technically, the chart suggests there could be at least one more higher low forming, with support currently found between $414 and $448. If that support holds, the price may push to one more higher high, potentially targeting the mid-$500 region before a substantial price top forms, likely leading into a larger degree correction.

AMD, on the other hand, is part of our regular stock membership coverage and appears to already be in a larger correction that began earlier in 2024. Within that correction, we are likely in a so-called B wave – a corrective countertrend bounce that could still push the price higher, possibly toward the $150 to $180 region in yellow wave B. In the short term, a pullback in wave B of B seems likely, with support in the $85 to $100 zone before a rally resumes in wave C of B. This means both stocks could face short-term pullbacks, but further upside is expected before more meaningful tops and corrections develop.

In the end, we don’t doubt Microsoft’s ambition. The company is thinking ahead. But vision without coherence doesn’t inspire confidence. Xbox seems to be searching for what it wants to be, while its competitors quietly double down on what they already are. For now, we’re staying curious – but not convinced.

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