Microsoft Confirms Next-Gen Xbox Console in Development, Hints at Handheld Expansion

Microsoft has officially confirmed that its next-generation Xbox console is currently in development. Alongside this, the company is expanding its reach into handheld gaming, following the success of its partnership with ASUS on the newly launched ROG Xbox Ally series.

In an interview, Xbox president Sarah Bond revealed that Microsoft is already prototyping and designing the next Xbox hardware in collaboration with AMD. “We are 100 percent looking at making things in the future. We have our next-gen hardware in development,” Bond said, emphasizing that the project is well underway.

Expanding Beyond Traditional Consoles

Bond clarified that the partnership with ASUS is not a shift away from the traditional home console model but rather an expansion of the Xbox ecosystem. “What we saw here was an opportunity to innovate in a new way and bring gamers another choice, in addition to our next-gen hardware,” she said.

The ASUS ROG Xbox Ally lineup has received an “overwhelming response,” encouraging Microsoft to grow its Handheld Compatibility Program. This expansion could allow other manufacturers to produce Xbox-compatible handheld devices, offering gamers more flexibility and choice.

Multiple Hardware Options for Every Gamer

Microsoft’s long-term goal, according to Bond, is to ensure that players have multiple hardware options to match their gaming preferences. “We want to make sure there’s an option for the power players who want the latest innovations and want to push the edge of what’s possible. And then, if someone is looking for PC gaming on the go, there’s Xbox Ally for them,” she explained.

The company plans to continue innovating across its Xbox hardware ecosystem, focusing on improved handheld experiences, performance enhancements, and expanded compatibility features.

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Next Xbox Could Feature Modular Design

While specific details about the next Xbox remain under wraps, a report from Tom’s Guide earlier this year hinted that the next-generation Xbox console could resemble a user-upgradable, pre-built gaming PC. Reportedly powered by a modular chip codenamed “Magnus,” the new console could allow users to swap or upgrade key components such as the CPU and GPU, a major shift from traditional console design.

Handheld Gaming Ecosystem Grows

In addition to ASUS, Lenovo is also said to be developing a new version of its Legion Go 2 handheld console, featuring a full-screen Xbox experience (FSE) similar to the ROG Xbox Ally and Ally X.

With these developments, Microsoft is clearly positioning itself to lead both the next-gen console race and the emerging handheld gaming market, blending power, portability, and player choice into a unified ecosystem.

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