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Next-Gen Xbox Will Be a Premium Steam Machine, According to Leak

December 1, 2025
in News
Next-Gen Xbox Will Be a Premium Steam Machine, According to Leak

A new leak claims that the next-gen Xbox codenamed Magnus is essentially a more powerful Steam Machine. Microsoft’s next console may be the premium PC console hybrid that some players are asking for.

Next-Gen Xbox Is a More Expensive Steam Machine

Steam Machine 4k Console Render
Screenshot: Valve

Ever since the Steam Machine was announced in November, there has been a lot of discussion around who the product is for. If it costs $600 to $800, then it’s likely too expensive for most console owners. And according to tech experts, it’s also not powerful enough to appeal to many Steam users who already likely own a PC. While we are still in the dark about the Steam Machine price, a recent leak has added another new interesting angle to the debate — Microsoft’s next-gen Xbox.

In a recent podcast episode, Tech Insider’s Moore’s Law Is Dead revealed that the next-gen Xbox is going to be a more premium device than the Steam Machine, but also cost more. “I think it’s likely that Xbox Magnus is going to be a thousand dollars. Although considering they just charged a thousand dollars for a handheld which is weaker than an Xbox Series X, and costs more…I think the pricing trajectory of Xbox is clearly going up moving forward. But I also think it will be as strong as a high-end PC. So maybe you can justify that more.”

Next-Gen Xbox Magnus
Screenshot: Microsoft

While paying a thousand dollars or more for a next-gen Xbox might be a dealbreaker for many, it’s important to point out that it’s not a traditional gaming console. Like the Steam Machine, Microsoft is trying to create a portable PC that can connect to anything. And like the Steam Machine, the Xbox Magnus can reportedly be used as a PC desktop and even access the Steam Store. So in theory, the next-gen Xbox is a high-end PC, whereas the Steam Machine will be an entry-level PC.

Why Steam Machine Could Still Beat the Next-Gen Xbox — Even With Weaker Specs

For some users, the next-gen Xbox could be the premium gaming device they have been looking for in terms of raw power and performance. However, the big unknown factor here is the operating system. It goes without saying, but the next-gen Xbox will likely run Windows OS. Steam Machine, on the other hand, will come with the Linux-based SteamOS, which most players prefer.

In fact, we only have to look at the Steam Deck as an example of this. I know many gaming enthusiasts who do not like the Xbox Asus ROG Ally X, despite it being more powerful. The biggest complaint with these third-party consoles is the Windows OS. In terms of sales, the Steam Deck is already outselling many handheld PC consoles, even with weaker specs. The fact that the Steam Deck is basically four years outdated spec-wise, and still is more appealing to many consumers, kind of says it all.

Windows OS Could Be the Biggest Problem for Xbox Magnus

Xbox Rog Ally X Consoles
Screenshot: Microsoft

Interestingly, there is also a rumor that the next-gen Xbox might have CoPilot and other unpopular Windows OS features. However, if Xbox Magnus allows you to install your own operating system on it, then that could make it a moot point.

The most interesting takeaway from all of this is that Microsoft is not competing with PS6 next generation. Both Valve and Xbox are instead going for the portable PC desktop market. And it will be interesting to see where all of this shakes out specs and price-wise between these two devices.

The post Next-Gen Xbox Will Be a Premium Steam Machine, According to Leak appeared first on VICE.

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