Microsoft’s upcoming Xbox next generation console is shaping up to be one of the brand’s boldest shifts yet. According to new reports from Windows Central and journalist Jez Corden, the device is being designed as a hybrid console/PC, marking a major departure from traditional console setups. It will reportedly run a full version of Windows beneath a console-style interface, allowing users to toggle between a gaming mode and full desktop functionality.
That means users could install PC software like Photoshop — or more importantly, other game storefronts such as Steam, Epic Games Store, and GOG — alongside Microsoft’s own Xbox Store. While this flexibility could make the system a powerhouse for gamers, it raises business questions about how Microsoft will maintain platform exclusivity and revenue streams when third-party storefronts are easily accessible.
The device is expected to maintain full backward compatibility, stretching back to the original Xbox library. Microsoft is also reportedly evaluating whether to remove the Xbox Live Gold multiplayer paywall, a move that would align its ecosystem with PC gaming and make multiplayer free across the board.
Pricing and the ROG Ally X Connection
Early speculation pegs the price of the Xbox next generation console around $1,200, though this could vary depending on configuration. Much of the system’s software layer is being tested through the ROG Ally X, which Microsoft has been treating as a beta platform for gathering feedback on its new gaming-oriented Windows UI.
The strategy makes sense: rather than building new hardware from scratch, Microsoft can refine its OS layer using existing devices and partner data from ASUS. The company reportedly still plans to release its own Xbox-branded handheld, but is taking extra time to ensure that the experience feels seamless.
The challenge will be ensuring that this hybrid setup truly feels like a console rather than a small gaming PC. Early users of the ROG Ally X have noted frequent Windows updates and prompts that break immersion, something Microsoft will have to smooth out before launch.
Bluepoint’s Cancelled God of War Multiplayer Game
In other major industry news, Bluepoint Games — known for acclaimed remakes like Demon’s Souls and Shadow of the Colossus — had reportedly been developing a cancelled multiplayer project set in the God of War universe. Leaked assets shared by MP1st revealed a Greek-era setting with large-scale environments and melee-focused combat.
The project, developed under Sony Santa Monica’s supervision, was cancelled before completion, but many fans believe the studio could be reusing those assets for a God of War PS2 remake. With the franchise celebrating its 20th anniversary, such a remake would fit Bluepoint’s strengths and Sony’s current strategy of modernizing legacy titles for PS5 and the upcoming PS6.
Battlefield and Kojima’s Matrix What-If
Elsewhere, Battlefield 6 is expanding with a new free-to-play Battle Royale mode called Redacted Sector (Red Sec). Launching October 28 at 8 a.m. Pacific, this standalone experience could help EA hit its target of 100 million lifetime players by removing the $70 barrier to entry. After the strong reception to Battlefield 6’s main release, this addition could further solidify its player base heading into 2026.
Meanwhile, in one of the more fascinating “what could have been” stories, it’s been revealed that Hideo Kojima was once offered the chance to develop a Matrix video game in the early 2000s. According to former Konami Digital Entertainment VP Christopher Bergstresser, the Wachowskis personally met with Kojima to pitch the project — but he declined due to his commitment to Metal Gear Solid 2.
Bergstresser noted that Kazuma Kuwata and Akihiko Saito, who were working with Kojima at the time, were present during the meeting. The Wachowskis brought their concept artists and asked Kojima directly to make the Matrix game, but the timing didn’t align with his schedule. The idea of Kojima handling the Matrix’s surreal world remains one of gaming’s great lost opportunities.
Kojima’s fascination with the Matrix is well known. During his work on Metal Gear Solid: The Twin Snakes with Silicon Knights, fans already noticed clear Matrix-inspired action sequences. It’s easy to imagine how his love for meta storytelling and cinematic presentation could have shaped a Matrix title — perhaps even influencing his later projects like Death Stranding.
