Next gen Xbox could remove backwards compatibility and add PS5 games says report

Metro

21-05-2025

New details about the next gen Xbox console suggest it will focus on support for Steam and Epic Games Store, potentially bringing Sony first party titles to Xbox.
Although Microsoft has announced the next gen Xbox, and strongly implied that at least one model will be portable, there's no concrete official information about it so far. It's also very hard to guess what form it might take, given how poorly the Xbox Series X/S has sold and how much Microsoft has begun to focus on Game Pass and multiformat support recently.
However, In recent days multiple sources have begun talking about the console supporting both Steam and Epic Games Store, implying that the new Xbox will be even more of a 'PC in a box' than usual. Something that should, in theory, allow PlayStation 5 games onto Xbox via the back door.
Xbox boss Phil Spencer has talked about the idea of adding Epic Games Store and Steam to Xbox consoles before, although nothing has ever come of it. Nevertheless, Windows Central editor Jez Corden claims that Microsoft has been in contact with Valve and that testing of Steam on Xbox may already have begun.
Although making the next gen Xbox console a PC makes sense on some levels (despite it sounding very similar to Valve's failed Steam Machines concept) anything bought on Steam or Epic Game Stores means a cut of the money going to those companies – 30% in the case of Steam.
Not only does that mean less money for Microsoft but it disincentives developers from making native Xbox versions of their games, since the PC version will already be compatible with the new Xbox hardware.
These are major changes to the Xbox ecosystem but Corden also raises the possibility that in order to improve Windows compatibility, Microsoft is considering dropping backwards compatibility with older Xbox games.
That seems like a public relations nightmare, but according to Corden the Microsoft document he saw, which suggested the possibility, is 'a few years old' and the idea may already have been dropped – although it's certainly interesting that it was ever considered.
Recent job ads seem to imply that Microsoft is still pushing for full backwards, and forwards, compatibility for Xbox consoles, while information from leaker eXtas1s suggests that cross-compatibility is still a big priority for Microsoft. More Trending
Although eXtas1s' track record is far from spotless, his information broadly matches with that of Corden, along with mention of Xbox emulation on PC and new tiers for Game Pass, including cloud-only and ad-supported options. He also claims that price rises are likely, particularly on PC.
A next gen Xbox that is essentially a PC masquerading as a console does seem a logical move for Microsoft, and yet neither of these reports address the one concrete detail Microsoft has provided so far, that the new format will feature the 'largest technical leap you've ever seen in a hardware generation.'
That has always seemed extremely unlikely, given the increasingly small improvement in graphics each generation, with the only explanation that seems to make any sense being something to do with AI – even though Microsoft's attempts to extol the virtues of the technology, in regards to video games, has so far gone down poorly.
It's possible that they consider the integration of Xbox and Windows 11 support to be a technological leap but it's not clear that ordinary gamers will be excited about the prospect or that its benefits will be obvious to mainstream customers.
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