Microsoft Canceled Xbox Keystone Over Pricing Concerns Despite It Working Well

Microsoft has canceled the Xbox Keystone over concerns related to pricing, despite the streaming device working really well.

During a recent interview, head of Microsoft Gaming Phil Spencer revealed that the company didn’t go ahead with the streaming stick that it had in development, stating that the idea is some time away from coming to fruition.

Spencer clarified that one of the main reasons why the Xbox Keystone was ultimately canceled pricing. It turned out to be more expensive than what Microsoft had wanted when the company developed a prototype. Therefore, the software giant decided to focus the Keystone development team’s effort on delivering the smart TV streaming app instead. According to Spencer, it was simply a change in direction, where the company decided that it was better to focus its efforts on its partnership with TV manufacturer Samsung, and where that app may show up in the future. In the meantime, the launch of the Xbox Keystone has been put on hold until Microsoft can get the right cost.

According to Spencer, the price delta between the Xbox Keystone and the Xbox Series S console has to be pretty significant in order for the streaming stick to make sense. He mentioned that Xbox Series S is at $299, and that the console may see some promotions during the holiday season that would make the Xbox Keystone an uncompelling offer. He wants to be able to include a controller with the streaming stick, but only when the pricing and time is right. For now, Microsoft is happy with the results of the TV app that it has developed in partnership with Samsung.

With regards to what the right price for a future Xbox Keystone device may be, Spencer stated that he don’t want to commit to a specific price at this point, be he believes that it should fall somewhere in the range of $99 to $129 for it to make sense. He revealed that the development team built a prototype in nine months, and that it worked really, really well.