Microsoft wanted to get into the game-streaming business with its own device, code-named Keystone, but it became clear the team had designed a product that was too expensive for consumers.
That’s according to Microsoft Gaming CEO Phil Spencer, who told The Verge that the team decided to instead focus on bringing a smart TV streaming app to Samsung TVs (thanks ResetEra).
Back in May, there was a report that Microsoft was getting into the game streaming business with an Amazon Fire TV Stick-like device. The report is accurate, and Microsoft decided to take “a new approach.”
“[Keystone] “When we actually built it with in-house hardware, it was more expensive than we’d like,” Spencer said. We decided to focus the team’s efforts on delivering a smart TV streaming app. For Keystone, we’re still focused on that and looking at when we can get the right cost.
“I think the price difference between the Xbox S has to be pretty significant for a streaming-only box. I’d like to be able to include a controller in it when we do. It’s really just about whether we can Build the right product at the right price, otherwise if we can’t, how can we focus the team? We decided to work with Samsung on the TV app and we’re very happy with the results there.”
A “right price” would be somewhere in the $129 or $99 range because it “makes sense,” Spencer said.
“When you’re developing a new product, it’s always about, do you have the right design? Do you have the right user interface? Do you have the right customer proposition? The customer proposition includes price, and I think all of us know we’re in The price is a bit out of place.”
Spencer went on to say that some of the chip choices Microsoft made when designing the device “just didn’t get us to the price point we wanted.”
