Microsoft is trying to make Xbox into Windows: Where 3rd parties make the hardware and then license the platform from Microsoft. It's a vastly more profitable model. Especially if they get all those end users signed up for a subscription service.

The problem is that the world thinks of "Xbox" as a console (and a specific kind of controller). To pull this off Microsoft is going to have to re-brand Xbox entirely by making people think of it more like a game-specific app store that runs on Windows and special handheld hardware. It won't be easy.

There's a bigger problem with this plan though: No real coordination with the Windows OS team. Windows on handhelds sucks. The past twenty fucking years of Windows development has been almost entirely focused on improving enterprise features with very little attention paid to end users or gaming.

Growth in Windows gaming has come despite Microsoft's investments. Not because of them. In fact, I'd argue that if it weren't for Steam, Windows—as a gaming platform—would be a fraction of what it is today.

Don't get me wrong, though! I love this new Xbox roadmap! Windows gaming has been holding back Linux desktop adoption for far too long. The latest benchmarks that show games on SteamOS vastly outperforming the new Xbox-branded handhelds pretty clearly demonstrates all that bashing of Windows by Linux nerds was deeply accurate.

It turns out that Linux on the desktop really is superior! 🤣

the xbone was the last console I bought. Soured the pot so bad on what I enjoyed about console gaming. I already had a PC, but still enjoyed the couch casual sessions that seemingly don't exist, and haven't for over a decade

With "optimized for gaming" premise? That's obviously nothing more than "hey we decided to allow you to terminate resource hungry explorer/copilot/edge when you play".

That'd still be better than Xbox S, Xbox Series X, Xbox One S

Super Xbox X 360 Series X Alpha Championship Edition with Hyper Fighting EX Plus Turbo & Knuckles

Streaming has plateaued, and I don't see anyone overcoming that plateau. The console market is coming to an end, but the transition is to PC gaming, not streaming, and we can measure that.

Steam will end up pushed out of the market

This has been explicitly attempted 3 times already, and that really didn't work out well for anybody who tried it.

Epic Games Store still resorts to bribing people with free games to keep their monthly active user numbers up, hemorrhaging money to attract users who are rarely interested in anything more than freebies.

EA and Ubisoft tried to forgo Steam releases in favor of their own stores and launchers in an attempt to keep 100% of the revenue. They eventually relented, releasing their games on Steam again. Even Blizzard joined in, adding Diablo 4 and Overwatch 2 to Steam.

And Microsoft's attempt to dethrone Steam by releasing games through the Windows app store just ended up with Valve funneling considerable resources into helping Linux and WINE become a viable alternative to Windows for gaming.

Unless Valve enshittifies or legal shenanigans ensue, they're pretty unlikely to be pushed out of the market. No single game or game series is good enough to capture the entire market of Steam users and permanently drive them to alternative platforms. On top of that, Steam has a huge following of users who are loyal to the company, which is both insane and insanely hard to compete against.

or they will also become Streaming Platforms

Maybe, maybe not. I don't see it happening, though. Valve makes money hand over fist from digital sales alone, and they have more to lose in pissing off their customers by selling subscriptions than they have to gain by selling subscriptions.

I am concerned about GOG and PC hardware prices, though.

I can't see streaming games being anything other than a niche market. It puts the burden onto the streamer, in order to be competitive they look after constantly be upgrading their offering, they will have to have multiple server centres around the world, they will always be beholden to crappy ISPs who just don't upgrade their infrastructure.

With local hardware you shortcut all of that, upgrading of your hardware is done by the user so they're not going to complain if it's out of date, you don't have to have any server centres, and the ISP issues either don't matter for single player games that were massively reduced for multiplayer games, now they don't actually have to send video over the connection. .