wait, did I read this wrong? . is phil not saying that Xbox will get a PC storefront but other storefronts coming inside the Xbox console?
Yes. Seems Xbox is becoming more PC-like which changes the entire dynamic of the console business for Xbox. Phil Spencer talks as if this is an industry thing, but realistically it is a game sales volume thing. I don't think Microsoft is getting the return on game sales that warrant selling consoles at a loss. So I think Microsoft is pivoting away from that model to one where the money to be made is partially in games sold on their store by putting their store at the forefront and other stores behind, but also selling hardware for profit which means much higher prices.
So what does this do?
1) Relieves the pressure off of studios to make games that sell consoles. Fits with their third party strategy as well.
2) Creates a hybrid PC-console model with more freedom to play PC games but still in a simple form factor
3) Allows for a Steam Deck type handheld as well
So the selling point here is an all-in-one unit that incorporates PC and console games in one device. That's going to come at a cost. Remember Sarah Bond bragging about the next Xbox having “the largest technical leap you will have ever seen in a hardware generation". That's going to be your $1000 PC-console hybrid.