Microsoft is Working on an Xbox Console Emulator for PC

Insiders report that Microsoft is developing an emulator that will allow users to run the Xbox game library on Windows devices. The first devices to potentially gain access to this new technology could be the ROG Ally and the rumored Ally X.

In the Xbox Two podcast, journalist Jez Corden suggested that this emulator could be unveiled as early as late 2025 or early 2026. He drew a parallel to the existing backward compatibility system, which allows Xbox 360 games to run on modern Xbox Series X|S consoles. Just like with console backward compatibility, not all games will be supported initially, and Microsoft will need to secure separate licensing agreements with publishers.

The emulator is expected to deliver the same user experience on PC as on a console—with instant game launches and no need for manual tweaking—which raises questions about how exactly this will be achieved. Currently, devices like the ROG Ally require some configuration, but with the emulator, it could become a true portable Xbox console with access to the entire console library.

The development of this emulator aligns with Microsoft's broader strategy of creating a hybrid gaming ecosystem, which is seen as the future for its next-generation console. In a recent interview, Head of Xbox Sarah Bond hinted that the next generation of consoles will be a "truly premium product," and that future devices will more closely resemble PCs.

In the coming years, we can expect to see a variety of devices under the Xbox brand, including hybrid TV solutions capable of running both native Xbox console games and PC games from stores like Steam. The next generation of consoles is expected to arrive in 2027 and will reportedly be based on new AMD chips. For now, information about the emulator remains at the rumor stage. However, if these plans come to fruition, the gaming industry could take a significant step toward completely erasing the boundaries between platforms.