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Phil Spencer Reveals Cloud-Based Xbox Was Too Expensive

November 15, 2022 by Dennis Patrick

Apps have proven to be the better route.

Microsoft has two next-gen console platforms out right now. Players can enjoy either the Xbox Series X or the Xbox Series S. You, however, might recall that there was a third console platform that the Microsoft company was working on. Xbox head, Phil Spencer, spoke in the past about a streaming-focused device. It was noted to be more of an HDMI device that players could plug into a monitor and start playing their favorite Xbox Cloud-capable video games. However, we haven’t seen that device officially announced. Today, we’re finding out that project Keystone proved to be just too expensive right now to pursue.

Phil Spencer recently spoke with The Verge, where the project came up in question. When Phil Spencer was asked about what happened to the device, it was a pretty straightforward decision. Phil noted that the device they built was just too expensive. Consumers now have a cheaper alternative device than the Xbox Series X. With the Xbox Series S, you’re only paying $299, and it seems that the cost to sell the Keystone device into the marketplace was too close to the Xbox Series S price tag.

“Keystone. It was more expensive than we wanted it to be when we actually built it out with the hardware that we had inside. We decided to focus that team’s effort on delivering the smart TV streaming app. It was really just a direction, “Okay, we’re going to focus our effort on our partnership with Samsung and where that app might continue to show up in different places over time.” With Keystone, we’re still focused on it and watching when we can get the right cost.”

The decision was to drop the project ultimately. While it looks like Microsoft is still focused and watching to see when they can get the right cost, it doesn’t look like it’s actively in the works. That might be a bit of a bummer for some fans who were hoping to acquire an even cheaper Xbox console platform. However, Phil did make note that the application route was their better option. In fact, the application is on select Samsung TVs, so you can get Xbox Cloud gaming right on your television without the need for any extra hardware outside of a controller.

At any rate, it does look like there is a push to get the Keystone project out once they can get the price point somewhere around $100. That would also likely come packed with a controller, so players would be set to start playing. Although, we have no indication quite yet on just when this device will be a reality. Fortunately, this does mean that Microsoft can continue to improve the cloud gaming technology to make the performance and visuals even more comparable to actual hardware gameplay.

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Category: UpdatesTag: Keystone, Phil Spencer, Xbox, xbox series x

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