Mon. Dec 5th, 2022

Microsoft has been looking to enter the game streaming business with its own device, codenamed Keystone, but apparently what the team has developed would be too expensive for consumers.

According to Microsoft Gaming CEO Phil Spencer, who told The Verge that the team has instead decided to focus their efforts on bringing the Smart TV streaming app to Samsung devices (thanks, ResetEra).

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Back in May, there was a report that Microsoft was getting into the game streaming business with an Amazon Fire TV Stick-like device. The report was accurate, Microsoft decided on a “new approach”.

“[Keystone] was more expensive than we wanted when we actually built it with the hardware we had inside,” Spencer said. “We decided to focus this team’s efforts on developing a Smart TV streaming application. With Keystone, we remain focused on this and are looking to see when we can get the right price.

“I think for a streaming-only box to make sense, the price delta versus the Xbox S would have to be pretty significant. I want to be able to include a controller in it when we do this. to create the right product at the right price, or if we couldn’t, how could we focus the team’s efforts? We decided to make a TV app together with Samsung and we are very pleased with the results.”

The “correct price,” Spencer says, “should be around $129 or $99 to “make sense.”

“When you create new products, it’s always important, do you have the right design? Do you have the correct user interface? Do you have the right offer for clients? This customer offer includes a price, and I think we all knew that. we were a bit out of position on price.”

Spencer went on to say that some of the silicon decisions that Microsoft made during the development of the device “just didn’t let us reach the price point we wanted.”