Name: Microsoft CEO drops big hint about next Xbox
Uploaded: 2025-10-30T16:47:36.880Z
Duration: 7 min 13 s
Description: Microsoft CEO Satya Nadella has dropped yet another hint that the next-gen Xbox is basically a PC. Daemon has the details on your Daily Fix.

Microsoft CEO Satya Nadella has dropped yet another hint that the next-gen Xbox is basically a PC. Daemon has the details on your Daily Fix.

Microsoft CEO Satya Nadella has indicated that the upcoming Xbox console will closely resemble a PC, supporting both traditional Xbox experiences and the ability to play PC games, including those originally released for PlayStation via Steam. Nadella emphasized Microsoft's aim to make its games widely accessible across platforms and highlighted the company's focus on innovation and profitability in the gaming sector.

In other industry news, Amazon is reducing its gaming operations following significant layoffs, impacting the development of its MMO titles. Meanwhile, the director of Final Fantasy VII Rebirth defended the use of yellow paint as a gameplay guide, citing accessibility and player guidance as key reasons.

Microsoft CEO drops big hint about next Xbox

What's up, everybody? Damon here, and in today's gaming news, Microsoft's CEO drops the biggest hint yet about the next Xbox, the Final Fantasy VII Remake director doubles down on yellow paint, and job cuts at Amazon affect its gaming business. This is your Daily Fix. ♪♪ Microsoft CEO Satya Nadella has dropped yet another hint that the next-gen Xbox is basically a PC. A new report this week claims the next Xbox is a console and PC hybrid that will play PlayStation games released on PC via Steam. That means the likes of Sony Santa Monica's God of War, Insomniac's Spider-Man, and Sucker Punch's Ghost of Tsushima, and pretty much all other PC games will all be playable on the next-gen Xbox in an industry first. Windows Central reported that while users of the next-gen Xbox can remain inside the Xbox ecosystem if they want, they can also exit to Windows, where the console acts like a traditional Windows PC. That means having access to PlayStation games on Steam and mouse and keyboard games from Blizzard's launcher, Battle.net, like World of Warcraft, even Riot's launcher for games like League of Legends. Now, in an interview with TBPN, Microsoft boss Satya Nadella responded to questions about the evolution of the company's gaming business, and in doing so, dropped a clear hint at where the company is going. Remember, the biggest gaming business is the Windows business, Nadella began. Now, we're the largest publisher after the Activision deal. Therefore, we want to be a fantastic publisher, similar approach to what we did with Office. We want to be everywhere on every platform, so we want to make sure whether it's consoles, whether it's the PC, whether it's mobile, whether it's cloud gaming or the TV, we just want to make sure the games are being enjoyed by gamers everywhere. Second, we also wanted to do innovative work in the system side on the console and on the PC. It's kind of funny that people think about the console PC as two different things. We built the console because we wanted to build a better PC, which could then perform for gaming. I kind of want to revisit some of that conventional wisdom. But at the end of the day, console has an experience that is unparalleled. It delivers performance that is unparalleled. That pushes, I think, the system forward. So I'm really looking forward to the next console, the next PC gaming. Nadella's comments here shouldn't really come as much of a surprise, given they reinforce previous reports and comments from Xbox executives. For example, Xbox president Sarah Bond has called out the recently released and pricey Asus ROG Xbox Ally X handhelds as pointing in the direction Microsoft is taking with its upcoming console. Nadella later went on to touch on Microsoft's gaming business model, saying the best way to innovate is to have good margins because that means the company can fund that innovation. He said, after all, gaming's competition is not other gaming. Gaming's competition is short-form video. And so if we as an industry don't continue to innovate, both how we produce, what we produce, how we think about distribution, the economic model, the best way to innovate is to have good margins because that's the way you can fund. The mention of margins follows a recent report that alleged Microsoft had pushed Xbox studios to deliver a 30% profit margin, much higher than the industry average. Moving on, Fountain Fantasy 7 Rebirth director Naoki Hamaguchi is once again championing the infamous yellow paint to guide players, saying there is definitely a need for it. Using yellow paint on ledges and walls to indicate a traversable area in a video game has been a hot topic among players ever since its rise in popularity in the likes of Uncharted on PlayStation 3. Final Fantasy 7 Rebirth uses this tactic too. In a new interview with GamesRadar, Hamaguchi said he understood there are some people who don't want or need the yellow paint, but insisted that it was necessary. He said, I get there is a debate about that, whether that fits with that world or not, whether some people want it, some people don't. I think as a game, there is definitely a need for that kind of thing in a lot of ways. I think obviously different developers experiment, try different things about what works best, what fits best, the right way of doing that in their game. The need to guide players around from a gameplay perspective and show them what can be done, what they need to do, there is definitely times where that is needed. So I think obviously there is more of a debate about how it's done, what level and what works, and there'll still be people who say, no, that doesn't fit at all, we don't like that. That's fine, but I think there is definitely a need there, and it's something that is definitely worth looking at. When the yellow paint debate kicked off with Rebirth last year, some said they didn't like how in-your-face the hand-holding was, not just in Final Fantasy VII Remake, but modern video games. Others, however, pointed out that it could be helpful and was an important accessibility feature. Developers too weighed in, with some highlighting how in playtests and focus groups, players sometimes struggle to work out where to go, get frustrated, and quit playing altogether. Because of this, somewhat obvious and sometimes unrealistic visual cues are needed to help point players in the right direction. And finally today, Amazon is walking away from making new content for its MMO, New World, amid huge layoffs affecting 14,000 rolls of the company. Now there is concern over the status of its Lord of the Rings MMO. Yesterday, October 28th, Amazon confirmed cuts affecting 14,000 rolls. It's one of the biggest rounds of layoffs the tech giant has ever seen, and comes at a time when other companies in the tech sector, such as Microsoft and Meta, have had similarly huge cuts. It also comes at a time when Amazon is performing well, so why are they happening? AI, basically. In a note to employees, Beth Galletti, Senior Vice President of People Experience and Technology at Amazon said, "'Some may ask why we're reducing rolls "'when the company is performing well. "'Across our businesses, we're delivering "'great customer experiences every day, "'innovating at a rapid rate "'and producing strong business results. "'What we need to remember is that "'the world is changing quickly. "'This generation of AI is the most transformative "'technology we've seen since the internet, "'and it's enabling companies to innovate "'much faster than ever before "'in existing market segments and altogether new ones. "'We're convinced that we need to be organized "'more leanly, with fewer layers and more ownership, "'to move as quickly as possible "'for our customers and business.'" What does this all mean for Amazon's gaming business? According to a report by Bloomberg, nothing good. There are significant cuts coming to Amazon's video game operation, which will reduce development work and layoff staff, mainly in its Irvine and San Diego offices. The new world changes are a part of that, and while the game will remain online during 2026, this is basically the beginning of the end for the once hugely popular MMO. Let's remember, New World was a rare hit for Amazon in the video game space, and followed multiple flops that resulted in game and studio closures. The MMO set in an alternate 1600s America saw huge player numbers on Steam, with a whopping 913,000 peak concurrence on Valve's platform back in 2021. Player numbers have significantly declined since that peak, however. Bloomberg said Amazon is cutting back, especially on MMOs, but will continue to develop Amazon Games Montreal's strategy, March of Giants, its new Tomb Raider game in the works at Crystal Dynamics, and casual and AI-focused games for its cloud gaming service, Luna. Amazon Games also continues to publish externally developed games such as Lost Ark and Throne and Liberty in Western markets. Amazon is also working on an in-house The Lord of the Rings MMO, although we haven't heard much about it since it was announced in 2023. And that is your daily fix for Wednesday, October 29th. If you're looking for something to play right now that helps support a great cause, head over to Humble. Live now through November 4th, grab eight incredible games for just $14.99, including Atomic Heart, V Rising, System Shock, Story of Seasons, Pioneers of Olive Town, Crypt Master, Feyrote New Era, Hotel Renovator, and Caravan Sandwich. Every purchase supports the whale and dolphin conservation, the leading global charity dedicated to protecting whales and dolphins through research, rescue, and advocacy. By joining in, you're not just building your library, you're helping create a world where every whale and dolphin is safe. I'm Damien Hatfield, and for all your video game news, stay tuned to IGN.

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