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

15 New Things Your iPhone Can Do in iOS 26.2

Friday December 5, 2025 9:40 am PST by
Apple is about to release iOS 26.2, the second major point update for iPhones since iOS 26 was rolled out in September, and there are at least 15 notable changes and improvements worth checking out. We've rounded them up below. Apple is expected to roll out iOS 26.2 to compatible devices sometime between December 8 and December 16. When the update drops, you can check Apple's servers for the ...
Intel Inside iPhone Feature

Apple's Return to Intel Rumored to Extend to iPhone

Friday December 5, 2025 10:08 am PST by
Intel is expected to begin supplying some Mac and iPad chips in a few years, and the latest rumor claims the partnership might extend to the iPhone. In a research note with investment firm GF Securities this week, obtained by MacRumors, analyst Jeff Pu said he and his colleagues "now expect" Intel to reach a supply deal with Apple for at least some non-pro iPhone chips starting in 2028....
iPhone 14 Pro Dynamic Island

iPhone 18 Pro Leak Adds New Evidence for Under-Display Face ID

Monday December 8, 2025 4:54 am PST by
Apple is actively testing under-screen Face ID for next year's iPhone 18 Pro models using a special "spliced micro-transparent glass" window built into the display, claims a Chinese leaker. According to "Smart Pikachu," a Weibo account that has previously shared accurate supply-chain details on Chinese Android hardware, Apple is testing the special glass as a way to let the TrueDepth...
iOS 26

Apple Seeds Second iOS 26.2 Release Candidate to Developers and Public Beta Testers

Monday December 8, 2025 10:18 am PST by
Apple today seeded the second release candidate version of iOS 26.2 to developers and public beta testers, with the software coming one week after Apple seeded the first RC. The release candidate represents the final version iOS 26.2 that will be provided to the public if no further bugs are found. Registered developers and public beta testers can download the betas from the Settings app on...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Monday December 1, 2025 2:40 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
Johny Srouji

Apple Chip Chief Johny Srouji Could Be Next to Go as Exodus Continues

Sunday December 7, 2025 10:41 am PST by
Apple's senior vice president of hardware technologies Johny Srouji could be the next leading executive to leave the company amid an alarming exodus of leading employees, Bloomberg's Mark Gurman reports. Srouji apparently recently told CEO Tim Cook that he is "seriously considering leaving" in the near future. He intends to join another company if he departs. Srouji leads Apple's chip design ...
Johny Srouji

Apple's Chipmaking Chief Johny Srouji Responds to Report About Him Potentially Leaving

Monday December 8, 2025 9:23 am PST by
Apple's chipmaking chief Johny Srouji has reportedly indicated that he plans to continue working for the company for the foreseeable future. "I love my team, and I love my job at Apple, and I don't plan on leaving anytime soon," said Srouji, in a memo obtained by Bloomberg's Mark Gurman. Here is Srouji's full memo, as shared by Bloomberg:I know you've been reading all kind of rumors and...
top stories 2025 12 04a

Top Stories: iOS 26.2 Coming Soon, Apple Execs Depart, and More

Saturday December 6, 2025 6:00 am PST by
You'd expect things to be starting to wind down for the holidays by now, but that doesn't seem to be the case yet in the world of Apple news, with Apple just about ready to release iOS 26.2 and other operating system updates to the public. There was also a flurry of news this week about Apple executive departures, some expected and some not so expected, while we also learned that Apple and...
maxresdefault

iPhone Fold: Launch, Pricing, and What to Expect From Apple's Foldable

Monday December 1, 2025 3:00 am PST by
Apple is expected to launch a new foldable iPhone next year, based on multiple rumors and credible sources. The long-awaited device has been rumored for years now, but signs increasingly suggest that 2026 could indeed be the year that Apple releases its first foldable device. Subscribe to the MacRumors YouTube channel for more videos. Below, we've collated an updated set of key details that ...
Apple Fitness Plus expansion hero

Apple Fitness+ Coming to 28 New Regions With Digital Voice Dubbing

Monday December 8, 2025 6:19 am PST by
Apple today announced that Fitness+ is expanding to 28 new markets on December 15 in the service's largest international rollout since launch, accompanied by new language dubbing and a K-Pop music genre. Apple Fitness+ will become available in Chile, Hong Kong, India, the Netherlands, Singapore, Taiwan, and additional regions on December 15, with Japan scheduled to follow early next year....

Top Rated Comments

matt_and_187_like_this Avatar
46 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
46 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
46 months ago
Apple TV is not qualified to be a rival of Xbox.
Score: 23 Votes (Like | Disagree)
Jim Lahey Avatar
46 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
46 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
46 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)