Microsoft Confirms Development of Next-Gen Xbox Hardware

Microsoft has officially confirmed that it is actively developing the next generation of Xbox hardware. Xbox president Sarah Bond stated, "We are 100% looking at making things in the future. We have our next-gen hardware in development," during an interview with Variety. This announcement comes amid speculation that Microsoft might abandon its console business following recent price hikes for Xbox Game Pass and other products. Bond emphasized that the company is committed to creating new hardware, including consoles and handheld devices, as part of a broader strategy to connect gaming across platforms.

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To enhance its hardware capabilities, Microsoft has entered a multi-year partnership with AMD to co-develop custom chips for future Xbox devices. This collaboration aims to improve graphics, performance, and power efficiency, ensuring that existing Xbox games remain compatible with new hardware. Bond noted that this partnership builds on a long-standing relationship, as AMD has supplied processors for Xbox consoles since 2013. The goal is to create a seamless gaming experience that allows players to transition between console, PC, and cloud gaming without losing progress.

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In addition to traditional consoles, Microsoft is exploring the handheld gaming market more seriously. The recent launch of the ASUS ROG Xbox Ally and Ally X handhelds has sparked discussions about the future of Xbox hardware. While these devices are primarily PC gaming handhelds, they incorporate Xbox services and features, allowing access to a library of Xbox Play Anywhere games. However, they do not support all Xbox console games, leading to some criticism regarding their value as Xbox products.

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The pricing of the ROG Xbox Ally has raised eyebrows, with the base model priced at $599 and the upgraded Ally X at $999. Bond clarified that ASUS set the prices based on its market insights, which has led to mixed reactions from consumers. The high cost, coupled with recent price increases for Xbox Game Pass, has contributed to a decline in consumer confidence in the Xbox brand. Critics argue that these moves could alienate existing users and hinder the platform's growth.

Microsoft let Asus set the prices for Xbox ROG Ally, confirms Xbox President — work on next-gen console hardware is already underway with AMD

Despite the challenges, Microsoft remains focused on its hardware strategy. Bond indicated that the next generation of Xbox consoles is "coming to life," with development well underway. While no specific release date has been announced, speculation suggests a potential launch around 2027. As Microsoft continues to innovate and respond to player demands, the future of Xbox hardware appears to be a blend of high-end consoles and versatile handheld devices, aiming to cater to both hardcore and casual gamers.

Microsoft confirms new Xbox console and handheld developmentXbox Officially Drops Next-Gen Console Tease, It's HappeningTechRadarMicrosoft triples down on Xbox hardware commitment, while also teasing first-party gaming handhelds — will it actually happen?Next-Gen Xbox Console Will Be a “Very Premium, Very High-End, Curated Experience,” Says Xbox CEOXbox Is 100% Looking at Making Things in the Future, Says President Sarah Bond

• “We are 100% looking at making things in the future. We have our next-gen hardware in development. We’ve been looking at prototyping, designing. We have a partnership we’ve announced with AMD around it, so that is coming. What we saw here [with the ASUS ROG Xbox Ally] was an opportunity to innovate in a new way and to bring gamers another choice, in addition to our next-gen hardware. We are always listening to what players and creators want. When there is demand for innovation, we’re going to build it.” — Sarah Bond, Xbox President

Microsoft triples down on Xbox hardware commitment, while also teasing first-party gaming handhelds — will it actually happen?

• “What we saw here was an opportunity to innovate in a new way and to bring gamers another choice, in addition to our next-gen hardware.” — Sarah Bond, Xbox President

Xbox Is 100% Looking at Making Things in the Future, Says President Sarah Bond

• “We are actively investing in our future first-party consoles and devices designed, engineered and built by Xbox.” — Microsoft Statement

TechRadar

While Microsoft has confirmed its commitment to developing next-gen hardware, there are conflicting reports regarding the future of its handheld gaming initiatives. Some sources suggest that Microsoft has paused its own handheld development to focus on partnerships like the one with ASUS, while others indicate that plans for a first-party Xbox handheld remain in consideration. Additionally, consumer reactions to recent price increases and product offerings vary, reflecting a broader uncertainty about Xbox's direction in the gaming market.

Microsoft triples down on Xbox hardware commitment, while also teasing first-party gaming handhelds — will it actually happen?