The first thing Microsoft did to signify that they were looking at evolutionary consoles was to choose x86 as the architecture for Xbox One. Phil Spencer has openly talked about iterative consoles and it seems that Microsoft are keen for the Xbox division to become one portal for Xbox Console Games and Windows 10 Games & software. Ultimately the idea that Xbox is a static console has been dismissed in recent years as Microsoft have focused on providing their games and services across all Windows devices.
Ultimately this is a huge shift in strategy for Xbox and could signify the end of the traditional console cycle. Phil Spencer was keen to talk about things like backwards compatibility and forwards compatibility and this is certainly something we’d expect to see from a company that is interested in an evolutionary console. Whilst many see this as a fundamental shift away from the traditional console model, it’s not too different at all. First of all, Spencer dismissed the idea that we’d see upgradable parts or add ons to the Xbox but that instead we’d get a brand new iterations that evolve the Xbox One. You won’t need to upgrade parts but instead you’d just be able to buy a new Xbox and immediately be able to play all Xbox One games on there, the added advantage being that Microsoft have worked hard to bring 360 backwards compatibility to Xbox One.
Microsoft are giving choice to consumers by bringing games to both Xbox One and PC. Not every gamer wants to play games on PC and not every gamer wants to play games on console but the crossover between the two means that Microsoft is able to capture a large gaming audience. Console exclusives don’t play a huge role in selling consoles these days and the majority of the top selling games are third party titles that appear on both console and PC. Microsoft are trying to create a strategy that allows them to be leaders on both PC and Console but face tough competition from Steam on PC and Sony on console. Releasing a new Xbox One model with additional features could put Microsoft back on equal footing with Sony if they are able to play their cards right and Microsoft are in a prime position for evolutionary consoles to work thanks to UWP.
Ultimately there are two ways this can play out. Microsoft could find that they’re unable to compete with Steam and the Windows Store is unable to gain any traction at all among gamers. In turn this means that many PC gamers will stick with buying their games through Steam and also not bother with the Xbox One Console. Whilst an iterative console does put Microsoft on equal footing with Sony, the PlayStation 4 install base currently stands at 40 million and so many gamers with consoles today would be more enticed by an evolved PlayStation 4 which is rumoured to be in development.
Alternatively, Microsoft could bridge the Console and PC gaming divide if UWP and Windows store is able to take off and they could use their advantage of Windows OS installed base to their advantage over Sony. Microsoft could turn the Xbox One into something of a Steam box where all Windows UWP games are able to run on Xbox One and vice versa. An evolved Xbox One could also provide additional features that could put them on par with Sony such as VR support with third party headsets or even compatibility with Hololens further down the line.
Ultimately it’s all up in the air for Microsoft right now but it is clear that evolutionary consoles is the next step for them. As they are behind in the gaming market right now they may choose to be a bit more aggressive and feature rich with their evolved console.