Microsoft Developing Low-Cost Xbox Streaming Dongle That Could Rival Apple TV

In news that could weigh heavily on the future success of Apple TV, Microsoft has confirmed it is working to bring an affordable streaming device to market that would allow users to play Xbox games without the need for a full-blown console.

xbox series x controller microsoft
It has been suggested for years that Microsoft wants to make gaming accessible to more people by cutting out the need to invest in a pricey console. The Xbox Cloud Gaming platform, which works on many devices including iPhone and iPad, is the company's software-based answer to that challenge, but it appears Microsoft isn't stopping there.

Speaking to Windows Central, Microsoft revealed it is actively working on new Xbox hardware. Codenamed "Keystone," the streaming device sounds similar to Chromecast and Google Stadia in that it will connect to any TV or monitor via HDMI, allowing users to tap into Microsoft's vast games catalog, as well as any other streaming content it chooses to host.

The company didn't provide any more details about the dongle or a potential launch date, but said that it had recently taken the decision to "pivot away" from its original vision for the device, which would allow it to "deliver Xbox Cloud Gaming to more players around the world in the future."

Along with access to triple-A console games, Microsoft's device is likely to double as a set-top box on which users can access popular streaming services as well as the company's own media apps like Microsoft Movies & TV.

Apple at one point was working on a low-cost ‌Apple TV‌ dongle, but those plans have been abandoned. Apple is now planning to launch a new version of the Apple TV in the second half of 2022, according to Apple analyst Ming-Chi Kuo. Kuo believes that the new ‌Apple TV‌ will have an improved cost structure, which suggests a lower price point than the current ‌Apple TV‌ (from $179) that is more competitive with other streaming media players.

Whatever the next iteration of ‌Apple TV‌ looks like, Apple's subscription-based gaming platform Apple Arcade will struggle to compete with a Microsoft dongle that can stream titles including Fortnite, Halo, Need for Speed, The Sims, and many other popular Xbox games.

Popular Stories

iOS 26

iOS 26.3 and iOS 26.4 Will Add These New Features to Your iPhone

Tuesday February 3, 2026 7:47 am PST by
While the iOS 26.3 Release Candidate is now available ahead of a public release, the first iOS 26.4 beta is likely still at least a week away. Following beta testing, iOS 26.4 will likely be released to the general public in March or April. Below, we have recapped known or rumored iOS 26.3 and iOS 26.4 features so far. iOS 26.3 iPhone to Android Transfer Tool iOS 26.3 makes it easier...
imac video apple feature

Apple Makes Its Second-Biggest Acquisition Ever

Tuesday February 3, 2026 12:45 pm PST by
Apple recently acquired Israeli startup Q.ai for close to $2 billion, according to Financial Times sources. That would make this Apple's second-biggest acquisition ever, after it paid $3 billion for the popular headphone maker Beats in 2014. This is also the largest known Apple acquisition since the company purchased Intel's smartphone modem business and patents for $1 billion in 2019....
Apple Logo Zoomed

Tim Cook Teases Plans for Apple's Upcoming 50th Anniversary

Thursday February 5, 2026 12:54 pm PST by
Apple turns 50 this year, and its CEO Tim Cook has promised to celebrate the milestone. The big day falls on April 1, 2026. "I've been unusually reflective lately about Apple because we have been working on what do we do to mark this moment," Cook told employees today, according to Bloomberg's Mark Gurman. "When you really stop and pause and think about the last 50 years, it makes your heart ...
iphone 16 pro colors 1

Apple Begins Selling Refurbished iPhone 16 and iPhone 16 Pro Models at Lower Prices

Wednesday February 4, 2026 7:44 am PST by
Apple today began selling certified refurbished iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max models on its online store in the U.S., with prices discounted by 12% to 22% compared to Apple's current or former pricing for the devices. Here were Apple's starting prices when the devices launched in September 2024: iPhone 16: $799 iPhone 16 Plus: $899 iPhone 16 Pro:...
Apple TV Color

Apple TV Announces 12 New Shows and Films Coming This Year

Wednesday February 4, 2026 12:29 pm PST by
Apple on Tuesday previewed 12 new shows and films that will be premiering on the Apple TV streaming service throughout 2026. The new series: Imperfect Women — March 18, 2026 Margo's Got Money Troubles — April 15, 2026 Widow's Bay — April 29, 2026 Maximum Pleasure Guaranteed — May 20, 2026 Cape Fear — June 5, 2026 Lucky — July 15, 2026 The new films: Eternity — ...

Top Rated Comments

matt_and_187_like_this Avatar
48 months ago
The current Apple TV is such a delusional product at this point that it has no competition. The XBOX Series S already beats it. It's almost the same price and it comes with a controller and 500GB of storage. So what do you want: A current-gen gaming console or a box that does the same stuff your smart TV already does
Score: 26 Votes (Like | Disagree)
JustSomebody12 Avatar
48 months ago
Apple would have boosted Apple TVs sales a lot if they had allowed cloud gaming on it.

Especially during the console shortages' peak.
Score: 23 Votes (Like | Disagree)
Bustycat Avatar
48 months ago
Apple TV is not qualified to be a rival of Xbox.
Score: 23 Votes (Like | Disagree)
Jim Lahey Avatar
48 months ago
Apple TV doesn’t set the bar very high as a rival. It’s pretty decent if you live solely inside Apple’s bubble and don’t mind half-baked media software with zero library management features, but that’s about where it ends. It’s functional at best and really not that great at any one thing. Should be half the price they ask for it.
Score: 17 Votes (Like | Disagree)
Pezimak Avatar
48 months ago
Firstly, no this won’t be challenging the Apple TV, it will be focused on game streaming, something the Apple TV can't do, and secondly it’ll cost a hell of a lot less then the Apple TV.

And for those claiming it will fail, I suggest you take a look at the games market, Xbox has been rather successful at that since Game Pass launched.. it isn’t going to fail against Apple because they aren’t even competing against Apple. It’s like claiming every single phone is competing with the Apple TV because they have streaming apps on them.

EDIT: I say this as a happy 2021 Apple TV4K and Xbox Series X owner.
Score: 13 Votes (Like | Disagree)
WiiDSmoker Avatar
48 months ago

Microsoft also developed a portable music system to rival the iPod. That went well.

Stick to making proper consoles Microsoft, you do it well.
Congratulations on living 20 years in the past.
Score: 10 Votes (Like | Disagree)