Microsoft has confirmed that it is actively developing its next-generation Xbox hardware, with the project now in the prototyping and design stage. The announcement was made by Xbox President Sarah Bond during an interview with Variety, where she also discussed the company’s growing presence in the handheld gaming market through its collaboration with ROG on the ROG Xbox Ally.
Bond described the response to the handheld device as “overwhelming,” saying it had clearly demonstrated consumer appetite for more portable Xbox options. She emphasized that Microsoft is not only committed to developing stronger high-end consoles but is also expanding into alternative form factors to give players more choice.
The Xbox chief confirmed that Microsoft is “100 percent” planning new Xbox hardware and revealed that the company has entered into a partnership with AMD to power its upcoming generation of devices. While specific performance details were not shared, the collaboration signals that the next Xbox will take advantage of AMD’s latest chip architecture and graphics technology.
According to Bond, this dual-track strategy — serving both high-performance console players and mobile-first gamers — is central to the brand’s roadmap. She stressed that Microsoft is closely listening to the expectations of both players and developers and intends to push innovation where demand is most evident.
“We are actively exploring manufacturing opportunities, with our next-gen hardware in the prototyping and design stage,” she said, noting that the future of Xbox will include more flexible hardware ecosystems rather than a single dominant device.
The comments also arrive amid ongoing speculation about the company’s retail strategy following reports that some retailers had stopped stocking Xbox consoles. Microsoft dismissed these claims last week, stating that major retail partners in the US and UK remain committed to selling Xbox Series X and S consoles as well as accessories and games.
Industry analysts believe Microsoft’s next-generation hardware push could signal a shift toward a multi-device platform model — one that integrates traditional living-room consoles with portable and cloud-ready hardware for a broader market reach.
As development continues, Microsoft is positioning itself to compete not just on raw power but on versatility, offering players a spectrum of devices tailored to different gaming preferences.
