A recently unearthed patent offers a glimpse into the design of the cancelled Xbox Keystone console. While previously hinted at by Phil Spencer, this budget-friendly streaming device may never see the light of day.
Microsoft explored various strategies during the Xbox One era to recapture lapsed gamers. This included the launch of Xbox Game Pass, a service that continues to thrive on Xbox Series X/S. Prior to Game Pass, Games with Gold provided free games, a service discontinued in 2023 alongside the introduction of Game Pass's tiered subscription model. Since Game Pass's inception, Microsoft has alluded to a dedicated console for cloud-streaming Game Pass content. A newly discovered patent reveals the device's planned design and functionality.
Windows Central recently uncovered details of the Xbox Keystone, envisioned as a streaming device akin to Apple TV or Amazon Fire TV Stick. Patent images depict a circular top reminiscent of the Xbox Series S, a front panel with an Xbox power button and what appears to be a USB port, and a rear panel featuring Ethernet and HDMI ports, plus an oval power port. A pairing button is shown on one side, with ventilation on the back and bottom. A circular base would have elevated the device for optimal airflow.
Microsoft has been testing xCloud since 2019, a process that likely aimed to optimize the Keystone's performance. The projected price point was $99-$129, but Microsoft apparently couldn't achieve profitability at this cost. This suggests the technology needed to stream Game Pass games via xCloud proved more expensive than anticipated. Considering Xbox consoles are often sold at or near cost, producing the Keystone for under $129 presented an insurmountable hurdle. However, with technology costs generally decreasing over time, a future release remains a possibility.
While Phil Spencer's past comments about the Keystone meant it wasn't a closely guarded secret, the project's abandonment doesn't preclude the underlying concept from influencing future Xbox initiatives.