Xbox shelves its Xbox Keystone Streaming Box over cost concerns - Phil Spencer Confirms

Xbox Keystone has been cancelled

Xbox shelves its Xbox Keystone Streaming Box over cost concerns - Phil Spencer Confirms

Don't expect Microsoft to release their Xbox Cloud console anytime soon

Microsoft has been working on a new Xbox system, an affordable cloud-based Xbox that is designed to work with Microsoft's Game Pass Ultimate Streaming service. This Cloud Xbox was known as project keystone, and Microsoft's Phil Spencer has confirmed that project keystone has been cancelled. 

When speaking on the Decoder podcast, Phil Spencer stated that Microsoft has no plans to release Keystone in its current form, as the system is simply too expensive. Microsoft wanted to launch Keystone as a $99-$129 device, a product that would likely ship with an Xbox gamepad and act as an Android TV type of device. 

"The console we built that now people have seen...was more expensive than we wanted it to be when we actually built it out with the hardware that we had inside." Phil Spencer stated. "A bunch of us took [this version] home and it worked...really, really well, [But] when you are building new products, it's always about, do you have the right design? Do you have the right user interface? Do you have the right customer proposition? And the customer proposition includes the price, and I think all of us knew that we were a little out of position on price."

Xbox shelves its Xbox Keystone Streaming Box over cost concerns - Phil Spencer Confirms

(Xbox keystone sits on a shelf)

Microsoft's Xbox keystone cloud streaming box was not cheap enough to be considered as a viable product from Microsoft. The company's Xbox Series S is already available for £249/$299, and a significant price delta is needed between keystone and Xbox Series S to make Microsoft's planned cloud streaming Xbox a viable product. 

Now, it looks like Microsoft's dream of a cloud-only Xbox is now "years away". In time, it may become cheaper to produce a Keystone-like gaming system, allowing Microsoft to revive the concept of cloud-only Xbox gaming. 

You can join the discussion on Microsoft cancelling their keystone cloud streaming Xbox system on the OC3D Forums.

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