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Microsoft had plans for a cloud-only version of the Xbox console called Keystone, which would have connected to Xbox Cloud Gaming servers instead of rendering games locally. However, the company struggled to reduce the price of the console enough to make it viable compared to the $299 Series S. The Keystone console design was leaked in a slide deck from the FTC v. Microsoft case, and it featured a smaller, square design similar to the Series S.

The console had cutouts on the bottom and back for air cooling, a front-mounted Xbox button and USB port, and rear-mounted Ethernet, HDMI, and power ports. The controller sync button was located on the side of the console. While the Keystone console shared similarities with the Series S in terms of design, it was smaller and square-shaped, resembling a dedicated video-streaming box like an Apple TV or Roku Ultra.

Despite the detailed design and functionality of the Keystone console, Microsoft decided not to release it due to pricing challenges. The company’s mid-generation plans have since shifted, with a focus on a disc-less version of the Series X and a multi-platform strategy for internally developed games. Microsoft’s console business has seen a decline in revenue over the past few years, prompting the company to reevaluate its product lineup and strategy.

While the Keystone console remains unreleased, Microsoft has not ruled out the possibility of launching it in the future if manufacturing costs can be reduced. In the meantime, the concept of a cloud-only Xbox lives on as an app for newer Samsung smart TVs. The Keystone console design, as revealed in a patent document, showcased Microsoft’s vision for a compact and stylish streaming device that could have complemented the existing Xbox lineup.

Despite the uncertainties surrounding the Keystone console, Microsoft’s exploration of cloud gaming and streaming technology indicates a potential shift in the gaming industry towards more accessible and versatile gaming experiences. As technology continues to advance and consumer preferences evolve, companies like Microsoft are adapting their strategies to meet the changing demands of the market. Whether or not the Keystone console sees the light of day, its design and concept illustrate the ongoing innovation and experimentation in the gaming industry.