Next-gen Xbox will reportedly be a "reference device," will let third parties create consoles

A recent rumor suggests the upcoming Xbox console will follow in the footsteps of Microsoft and make it a "reference device." Just like the Surface Pro is a reference device for Windows PCs, the next-gen offering could allow third parties to create their variants of the console with differing features to target a wider price range. This makes the device significantly different from the formula that Sony and Nintendo follow with their home consoles.

The latest report comes from Jez Corden, who has a good reputation when it comes to providing generally reliable information. The r/GamingLeaksAndRumors community ranks him in Tier 2.

If this information is accurate, it unlocks several possibilities — Xbox OS could be used to launch consoles at several price points, including more premium and costlier options with extra rendering prowess for 4K 120 FPS, handheld machines, or even multi-boost devices with Android, Windows, and Xbox OS in an ideal world. This, however, could be far-fetched and just optimistic speculation.

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Why reference design and custom Xboxes are a big deal?

An open Xbox ecosystem could unlock multiple opportunities for innovation (Image via Walmart)

Windows currently dominates the PC operating system market with over 96.76% of all users opting for it. This is primarily because Microsoft made the OS available to any computer maker around the world to integrate it into their machines. Meanwhile, the company only makes a couple of reference-design models with its Surface series.

This is unlike Apple, which restricts its software to just MacBooks. Although this strategy has its pros, it has prevented macOS and the company's laptops from spreading as widely as Windows.

Microsoft's gaming console has been struggling for the past couple of generations. It is being significantly outsold by the Sony PlayStation, and things are only looking worse in terms of the current generation.

As such, the company might now be planning to roll out its successful Windows model to its home console lineup. We already had a taste of consoles in multiple price points with the Series X and Series S. Given the popularity of the cheaper machine, providing freedom to third-party manufacturers to launch more models targeting various price points will likely benefit both players and Microsoft.