Xbox staff are now internally testing a new ROG Xbox Ally feature — which is also slated for Xbox next-gen

Microsoft staffers have been able to test a new self-host build, complete with an upcoming Xbox Ally X feature, that is almost certainly slated for the next-gen Xbox.

There's been a flurry of small but intriguing updates about the next-gen Xbox over the past few months. Our reporting details how the next-gen Xbox is essentially a PC, using a hybridized SoC from AMD, which the latter codenames Magnus. This Xbox will bridge the gap between Xbox console and PC, bringing all of your existing console library forward as Microsoft doubles down on PC game development.

Developers will eventually be expected to move to supporting Xbox PC to make the most out of their games, and some big announcements are going towards GDC specifically with this goal in mind.

For current Xbox console players in the interim, not a ton will change in essence. Your Xbox games will still work as expected on the next-gen Xbox. If you're not planning to upgrade any time soon, developers will likely keep supporting the Xbox Series X|S development environment for an irregularly long amount of time.

The AI gold rush has sparked a wave of component scarcity, which has seen prices rise repeatedly as existing stocks run out. Indeed, I've heard Microsoft expects the current-gen systems, namely the Xbox Series X|S and PS5, to have an artificially elongated life span.

But that doesn't mean Microsoft isn't intending to move ahead with its next-gen Xbox, which, despite component constraints, still has a 2027 runway according to my latest information, although this could change as we get closer in.

On Xbox's next-gen console(s) — Microsoft's most ambitious hardware platform ever - YouTube

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But what kind of features will this next-gen Xbox have?

The next-gen Xbox will use an environment similar to that of the Xbox Ally range from ASUS. It sports full-blown Windows, which means Steam, Epic Games Store, mods, Battle.net, and even things like Adobe Premiere and content creation tools. Hook up a printer or do full game development if you fancy. The next Xbox is a Windows 11 PC all up — complete with all of its power and potential problems.

Given that it'll be a PC, we can expect interfacing and I/O like a PC. That means things like Bluetooth, USB-C, maybe even Thunderbolt. But what if it also has an NPU?

For better or worse, Microsoft is pushing hard with AI, as we all know. But for gaming, AI potentially has some solid use cases. Microsoft is known to be working on testing out some of these with the Xbox Ally X, armed with a unique NPU-bound version of the Z2E APU. This means things like AI-powered upscaling and frame gen, bringing boosted performance without compromising on battery life, at least potentially.

Beyond this, Microsoft staffers are currently testing a new feature from the Gaming AI team, dubbed Highlight Reels. Microsoft insiders are able to self-host this build on their Xbox Ally X units, and our sources described the feature thusly:

"The Highlight Reels feature allows players to automatically capture memorable gaming moments without any additional downloads, and without leaving gameplay. This will launch in the next few months on the Xbox Ally X handheld."

Since this feature requires the AI NPU, it presently only works on the Xbox Ally X, although it's not far removed to speculate that the Gen 10 Xbox will also have an NPU to support these types of features.

We're told that as of writing, the feature is being focus tested in Forza Horizon 5, Palworld, League of Legends, DOTA 2, Rocket League, Elden Ring, Overwatch 2, Lies of P, Battlefield 6, Call of Duty, Among Us, Fortnite, and Rainbow Six Siege. Presumably, this will eventually roll out to all titles.

How this looks in action remains to be seen, but I imagine it'll use Xbox's DVR on PC and Gaming Copilot (if enabled) to detect frenetic or exciting moments, then edit them together automatically for social media sharing.

Whether that comes with transitions, text, or special effects is unknown for now, but it's not a stretch to imagine where Microsoft could take it. I've posted some clips from Elden Ring in the past that went semi-viral, which did require some editing overhead. It would be interesting if this system actually works as described.

It's also not a stretch to assume this feature will also tie into the new Postgame Recaps feature that is currently rolling out for PC gamers in the Xbox ecosystem, which will doubtless also be available on the next-gen Xbox if it finds success with testers on Xbox PC.

It's quite exciting to see Xbox PC get new features like this, although I would feel neglectful not to mention how badly I want the app to have boosted performance first. On the Xbox Ally X even, the Xbox PC app can be incredibly sluggish while navigating the store and its libraries, with cursor inputs getting backed up into a weird traffic jam state.

I'd also like to see the basic Xbox clips feature on Xbox PC get some love before this Highlight Reels system rolls out — we can't even auto-save clips to OneDrive via Xbox PC yet, without jumping through some annoying hoops.

Microsoft has a good couple of years to solve Xbox PC's biggest issues before the Gen-10 Xbox drops, though, which is why we're seeing the bulk of investment land over that side at the moment. In Microsoft's most recent earnings call, CEO Satya Nadella noted the rapid growth Xbox PC has been seeing, which bodes well ... as long as it gets the polish it needs.

Over to you

Do you think you'll get good use out of the postgame recaps feature, or is it not really relevant to you? Are you an Xbox Insider? Let me know in the comments below.

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