A recently unearthed patent offers a glimpse into the design of the cancelled Xbox Keystone console. While hinted at previously by Phil Spencer, the project ultimately failed to materialize.

Microsoft explored various strategies during the Xbox One era to recapture lapsed players. This included the launch of Game Pass, a service that has significantly expanded and continues with the Xbox Series X/S. Prior to Game Pass, Games With Gold provided free games, but this service concluded in 2023, coinciding with Game Pass's introduction of multiple subscription tiers. Following Game Pass's success, Xbox explored a dedicated streaming console focused solely on cloud-based Game Pass content. A newly discovered patent reveals this device's intended design and functionality.

Windows Central recently unearthed details of the Xbox Keystone, envisioned as a streaming device akin to Apple TV or Amazon Fire TV Stick. Patented images showcase a circular top design reminiscent of the Xbox Series S. The front panel features an Xbox power button and what appears to be a USB port. The rear panel includes Ethernet and HDMI ports, alongside a presumed power port. A pairing button for controllers is located on the side, with ventilation slots on the back and bottom. A circular base elevates the device for optimal airflow.

Why the Xbox Keystone's Cancellation?

Microsoft has been actively testing xCloud since 2019, a process likely intended to optimize the Keystone's performance. The projected price point was $99-$129, but Microsoft couldn't achieve profitability at this cost. This suggests that the technology needed for xCloud-based Game Pass streaming exceeded the targeted price. Considering Xbox consoles are often sold at cost or at a loss, producing the Keystone for under $129 proved insurmountable. However, future release remains possible as technology costs typically decrease over time.

Despite Phil Spencer's past comments about the Keystone, its existence wasn't entirely concealed. While seemingly abandoned, the project's underlying concepts could potentially inform future Xbox initiatives.