Microsoft has been relying heavily on its Xbox Game Pass subscription of late. The company has been looking for ways to capitalize on the service that generated over $2.9 billion last year.

Last summer, Microsoft announced that it was developing a standalone device that could stream Xbox games to TVs or monitors. This device was codenamed "Keystone" and was designed to eliminate the need for a dedicated console to play games.

Phil Spencer, Microsoft's Head of Gaming, recently spoke to The Verge about the device and revealed that some employees got the chance to test it at home. Spencer even teased the device when he shared a photo of his office last month.

It did work well when it was tested, but proved too costly to produce. "The console we built that now people have seen, Keystone, was more expensive than we wanted it to be when we actually built it out with the hardware that we had inside, and we decided to focus that team's efforts on delivering the smart TV streaming app," Spencer reveals.