We now know Xbox Helix, the next-gen system from Microsoft, will run PC games.
This represents a dramatic change from the tried-and-trusted console business model, and it remains to be seen how the Redmond firm will square the circle.
Platform holders like PlayStation and Nintendo have, historically, sold their hardware at a loss or break even in order to get people into their ecosystem.
Once they’ve successfully got enough units into players’ homes, they make the bulk of their money through microtransactions, subscriptions, accessories, and software sales.
It’s unclear how Xbox will keep players within its own ecosystem if it allows them to install rival storefronts like Steam, and that’s going to have a profound impact on its overall income.
Rumours already suggest the box could cost up to $1,200 to compensate.
It also raises a dilemma for PlayStation who, up until recently, was in the business of selling PC ports.
This story has changed somewhat over the past few days, as it’s been reported Sony has pulled the plug on conversions of its single player games, like Ghost of Yotei and Saros.
But it doesn’t change the fact that, should everything go as rumoured, you’ll be able to play tentpole first-party titles like Marvel’s Spider-Man 2 and God of War Ragnarok on Xbox Helix.
So, is this something Sony could block in the future?
Based on the research we’ve done, it’s unclear about the feasibility of this. There doesn’t appear to be a precedent for publishers picking and choosing which platforms its Steam software can run on, and we suspect something like this runs contrary to Valve’s terms and conditions.
What we will say is that PlayStation didn’t do anything to prevent its games from running on the Xbox ROG Ally X, the PC-based handheld which launched last year.
While this did generate some headlines at the time – “Look Mum, I’m playing Spider-Man 2 on an ‘Xbox’!” – it hasn’t really had any kind of negative impact on the PS5 or PlayStation’s business.
Our guess is that, any PC games that already exist or are released in the future, will run on the Xbox Helix – albeit through Steam. It’s important to underline that Microsoft will not see a cent from any of this, and so it brings us back to the business model issues we outlined above.
It’s possible that Sony’s decision to back away from single player PC ports has partly hinged on Microsoft’s strategy, although it’s likely a footnote compared to the lack of revenue being generated by these games.
But it will be fascinating to see if any of this changes the calculus on console exclusives. Sony has, in the past, paid publishers to delay the Xbox versions of their games; Silent Hill 2, for example, was exclusive to PS5 and PC for a year. There are other examples.
Is there much point in continuing to do this when Microsoft can just point its players to Steam? Again, it won’t see a cent from this strategy, but by the same margin it doesn’t seem like Sony will get much out of it either.
It’s going to be interesting to see how this all shakes out and what kind of impact it has on PlayStation moving forward.
The lines between PC and console have never been more blurred than they are right now.