Phil Spencer Comments On Why The Xbox Streaming Console Is Not Ready

Microsoft Gam­ing CEO Phil Spencer has made a state­ment regard­ing the com­pa­ny’s plans for an Xbox game-stream­ing device, code­name Key­stone. He’s say­ing the team decid­ed to rework the unit this past May because it was prov­ing to be costly.

Spencer spoke to The Verge’s Decoder pod­cast, as tran­scribed by VCG, say­ing Microsoft opt­ed to focus more on build­ing the new Sam­sung smart TV Xbox app, shift­ing away from Key­stone for now due to high­er costs than what was expected.

The Series S is priced at $300, so the delta between the S and the stream­ing device would need to be “pret­ty sig­nif­i­cant” com­mer­cial­ly, accord­ing to Spencer. He added the Key­stone device, when­ev­er it launch­es, will like­ly cost between $100-$130. Spencer has a desire to include a con­troller with this device, mak­ing it dif­fi­cult to reach that price point.

I think you’ve got to be $129, $99, like some­where in there for that to make sense in my view, that we just weren’t there. We weren’t there with the con­troller. And I love the effort,” Spencer said. “The rea­son it’s on my shelf is the team rolled up their sleeves and in nine months they built that thing. And a bunch of us took it home and it worked. It worked real­ly, real­ly well.”

Spencer also said Key­stone was designed as a stand­alone unit, mean­ing it required every­thing to be “bespoke.” In the end, costs for “some of the sil­i­con choic­es” Microsoft was mak­ing at the time has result­ed in the halt of the project for now.

Microsoft still plans to release a stream­ing Xbox device, but it won’t be any­time soon.

I am a Platinum lover and an ex- Cod-aholic. I've been playing games since I was 5 years old and I refuse to quit, despite my mother's attempts to get me to. God of War and its successors are my all time favorite games.

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