You will remember that it was “leaked” a little over a month ago. Microsoft may be working on an Xbox Keystone. And if you’re wondering why I put that in quotes, it’s because the source of this information was a tweet from Phil Spencer that included an image where we could see the suspect device on the shelf. And as our colleague Juan said at the time, it could have been an oversight, but it is not common for these types of managers to sew without thread. So we can see it as a leak, as a trial balloon, as a backup, or even as an unofficial announcement that came from an official source.

Be that as it may, the Xbox Keystone project has started to spark a conversation, with some users praising what this new device has to offer, others seeing it as unnecessary and therefore a mistake. Personally, I thought it was a bold and smart bet that follows a line I’ve been working on for some time, and that Microsoft is working, at least on one line, in the concept of Xbox as a service. A strategy in which Xbox Cloud, Redmond’s cloud gaming service, plays a key role.

But let’s start from the beginning. Xbox Keystone is (or will be or will be, as its future is unclear) a device specifically designed for cloud gaming, so you only need the necessary components to manage the audio and video signal, connectivity to both the Internet and the game controller, and of course also the management of the same. And eventually, it could also offer access to other online services like Netflix, Prime Video, Spotify, etc.

A device this lightweight should be quite cheap, both to manufacture and to sell, but it seems that this is where the project has hit a major blow that we don’t know if it will be able to overcome. And that’s because, according to Phil Spencer on The Verge’s Decoder podcast, The Xbox Keystone’s production costs far exceed what the company expected and requested.

You must be asking about the numbers, right? Well, Microsoft’s original intention is The retail price of the Xbox Keystone will be between $100 and $130but early tests in this regard, when the cost of manufacturing the device and its controllers were added, made the suggested retail price dangerously close to that of the Xbox Series S, the model all digital from the Redmond console.

Such a device at the price originally requested by Microsoft can be a very competitive productbecause it offers the same as other devices smartizers TVs, but specially designed with online gaming requirements in mind, plus an Xbox controller. However, unless they manage to significantly reduce production costs, the Xbox Keystone may never see the light of day after all.