Today I’m going to look at what hardware will be released for Xbox in 2022 and how Game Pass will have a big say in what that device is. Will we see a VR headset? What about Xbox portable? Could we even see an Xbox console upgrade as some have speculated? Keep watching and at the end Ill reveal what I think the device to be released will be and why.

Right now, all of Xbox’s efforts are trained towards making Game Pass the Netflix of gaming. Whether you own an Xbox, PlayStation PC, laptop mobile phone or iPad Microsoft want you to subscribe and play games on devices you already own. So why would they release their own new hardware 2022?

1. Control. By selling the hardware you use to consume Game Pass Microsoft can control your experience, to a greater extent, than if you were using an Android phone or Apple iPad.
2. Customer lock in. By giving gamers the option to go “all in” on Microsoft gaming, be that on the Xbox or Windows PC, they create loyal “sticky” customers who are less likely to spend time and money with other gaming providers such as PlayStation or Nintendo
3. Money. More sales should equal more money.
4. To compete in emerging markets. At this stage the handheld consoles have been relatively low powered affairs but with the release of Steam Deck and low power consuming ARM chips, like Apples M1, the technology has advanced to the point where powerful handheld, console quality gaming is a possibility.

Will we see a handheld Xbox?

The release of the Steam Deck in recent weeks and the ongoing success of the Nintendo switch has caused many Xbox fans to speculate that Microsoft will also enter the handheld gaming market. There is clearly a desire for Xbox fans to play games natively on an Xbox branded device which many see as a no brainer. Let’s look at the evidence both for and against

1. The Switch isn’t Nintendo’s first handheld. They have years of experience in developing the hardware and have much tighter control over what is published to their platform. Nintendo’s consoles have also tended not to trade of graphical prowess but playability and shared experiences like four player Mario Cart and Wii sports. These less graphically intense games lend themselves to handheld gaming in a way Xbox and PlayStation games do not.
2. Microsoft have struggled to make money on hardware, especially Xbox hardware, which has razor thin margins. Sony owns more of the supply chain which creates PlayStation devices so can generate more profit from hardware sales. This is big reason why Microsoft may choose to let others take the risk of developing and releasing their own hardware.
3. The rise of mobile gaming and new chips means that ever more powerful games are possible on Android and IOS. By entering the handheld space, I believe Microsoft would be competing not just against Steam Deck and Switch but also every Android and IOS its users already have. They have made a commitment to meet their customers where they are…. which leads us on to reason four…
4. Game Pass. In some ways if you are a Game Pass subscriber and you have a mobile phone then you already have a handheld or portable Xbox device. Stream games to your phone or tablet, pair an Xbox controller and you are away. Comments recently about better supporting game pass on the steam deck shows you the direction of travel for Xbox and it isn’t in developing and releasing hardware into a market where Microsoft has no history or market presence. However, if Microsoft can create a great support experience for the Steam Deck, then they will have created a portable Xbox / Game Pass machine in all but name and without the expense of developing the hardware for themselves.

Another Xbox console?

I have seen speculation regarding another Xbox console edition, and this is perhaps the least likely to happen. The ongoing chips shortage combined with the strong sales for the Series S makes another edition less likely. Microsoft were able to beat their sales projection for the “series” line of consoles because of the S model and we should expect this to continue for another year at least.

However, it is possible that internal parts will be changed due to manufacturing efficiencies or availability of components, but I wouldn’t expect this to lead to a new edition or rebranding. One remote possibility is that we see a slim version of the series s or a short version of the X due to more power efficient parts. But these types of devices don’t tend to be released until halfway through a product lines life cycle.

Will we see Xbox VR in 2022

If you have seen either of my previous two posts on VR for Xbox you already know the answer to this, and that is that whilst Microsoft is committed to the Metaverse as a concept (and therefore VR and AR) 2022 will be a year in which they position themselves to attack that market in the coming years. The Activision acquisition and deals with Qualcomm and Samsung to work on VR experiences for the “Microsoft ecosystem” are interesting but don’t expect to bare any fruit until 2023 at the earliest. They have begun to make noise in the enterprise space with their Mesh offering in Teams so if this product and concept follows other recent Microsoft releases it will come to consumers once the enterprise cash has started to flow. By the way If you are interested in either of those deals, I’ll leave links in the comments, description and at the end of this video.

Most likely in 2022…..a game streaming stick turning your TV in to a game streaming device. For some compatible TVs this could be achieved through an app you download but for everyone else a streaming stick will turn your TV in to a Game Pass gateway. Regular Xbox controllers could be paired with the streaming stick or new controllers could like directly to the Xbox servers over Wi-Fi to cut down latency, making twitchy multiplayer gaming possible. Think of the way that Google Stadia or Amazon gaming can stream to any compatible device and connect their controllers. When you consider that this is the one piece of hardware which directly drives adoption of Game Pass it starts to see most likely.

Look at the direction of travel

Xbox are all in on Game pass and Game streaming. It allows them to meet their customers where they are. If Microsoft are to release new hardware in the near future, it will have to drive or contribute in some way to Game Pass adoption. It is entirely likely that they will release no hardware for the next few years but increase efforts to support 3rd party hardware makers such as Android phone makers and the newly released Steam Deck. They carry no risk from developing the hardware and continue to make more money from software. Ironically the more they support other manufacturers hardware efforts the more perceived value Xbox game pass has. The bets Xbox made years ago by developing this service and the acquisitions they made are starting to pay off. Twenty-five million subscribers and counting!

Would you like to see VR or a Handheld for Xbox? Let me know in the comments below.

https://youtu.be/tZLTFhmxRGc