It's interesting that they're doubling down on Magnus being a PC, though, as KeplerL2 and others have been leaning into it being, still, an actual console.
People said that they were probably confused between the next gen Xbox console and Xbox PC, but now they have acknowledged the existence of these different OEM models, so...
Microsoft themselves are sloppy and vague AF about all of this, but I figure they will market it as a console with PC-like open-ended features & functionality. It's not a
traditional console at all (nor does it have the business model of one, not anymore), but will be designed to look and feel like one in terms of the couch experience and fitting in a typical living room AV setup.
Of course now their biggest problem here is that it's using Windows 11 and modeling itself after the Xbox ROG Ally experience, both of which are absolute garbage. Not to mention it'll be bogged down with tons of Copilot nonsense. The only chance of any of that side improving is if the AI investments crash spectacularly, and MS are forced to get Windows back on track while hundreds of billions in market valuation is continuously shed off due to the bubble collapsing.
At least they can take comfort in the fact they won't be alone. Nvidia in particular could do with a severe market humbling if this AI stuff finally pops soon.
Warranty, support, purchasing with MS/Xbox rewards etc. cheaper prices than the OEM built higher spec versions.
A lot of assumptions on your part.
Honestly, I think this is Microsoft's smartest venture in years. Instead of chasing traditional console hardware numbers, they're focusing on Magnus — a move that plays directly into their core strengths in the PC space. With their control over Windows and deep OS-level optimization, they're planting a long-term seed in the market where they have the most leverage.
If Microsoft had explored this direction back in the late Xbox 360 era, they could have built a massive alternative storefront that genuinely challenged Valve's dominance. An ecosystem parallel to — and competitive with — the Steam marketplace could have existed today.
Magnus won't threaten Steam immediately, but ten years from now it could develop into a serious force. Ignoring that possibility would be shortsighted. Smart companies pay attention to every move in the market — because the smallest seed today can become the biggest competitor tomorrow.
You're giving Microsoft too much credit. They have never risen to the top of a market unless by use of strongly anticompetitive practices and had they not been challenged by the government in the late '90s over things they were doing to cockblock Windows '95-era software developers (withholding API tools and giving 3P worst-running code as just two examples), then yeah we'd probably have a market today where MS had the biggest PC storefront for gaming, but it would not have been earned whatsoever.
They'd of just starved companies like Valve out through EEE and delaying providence of competitive API packages to them to give their own in-house products the advantage, and that would still not have stopped the declines in Windows as an OS we have seen over the past decade. Also I highly doubt Magnus will have any impact on Valve's hardware plans or stopping the shift in certain segment from turning towards Windows alternatives (whether exclusively or as alternative OSes for specific uses), and it's odd claiming what MS are doing with Magnus as reacting to a "small seed".
Like Steam, GOG, EGS etc. have been around for 1-2 decades, and console-exclusive/console-centric devs were already shifting to support platforms like Steam more heavily by the middle of
last generation. MS typically don't push into a new segment until it's already clearly established and just rely on their capital to try outspending who's already there (or acquire them). It's been that way since the early '90s.