Key Highlights:
- Xbox President Sarah Bond confirms next-gen Xbox console is officially in development.
- Microsoft is partnering with AMD to design the system’s custom hardware.
- Bond hints at additional hardware options beyond the console, following the ROG Xbox Ally launch.
After months of speculation, Microsoft has confirmed what many fans suspected, the next-generation Xbox console is officially in development.
The news came directly from Xbox President Sarah Bond during an interview with Variety, where she outlined the company’s ongoing hardware plans and addressed recent rumours that Microsoft was stepping away from console production altogether.
Bond confirmed that Microsoft has already begun designing and prototyping its next system, stating:
“We have our next-gen hardware in development.”
While she didn’t share specifics on specs or a release window, she did reveal that Xbox is once again partnering with AMD, the same chip manufacturer behind both the Xbox Series consoles and the PlayStation 5.
That partnership will reportedly result in a new custom APU, rumoured to be the largest AMD has ever produced for a gaming device. Early leaks suggest the new Xbox could outperform Sony’s upcoming PlayStation 6, which is also expected to use AMD components.
This confirmation comes at an interesting time for Microsoft. Hardware sales have dipped sharply over the past year, down roughly 22% year-on-year, even as Game Pass continues to break internal revenue records.
The company has also faced criticism over price hikes for both its hardware and subscription tiers, creating uncertainty around how the next-gen console will be positioned.
If Microsoft wants to compete directly with Sony and Nintendo’s next hardware cycles, pricing and performance will need to align carefully with the market’s expectations.
Beyond the console itself, Bond hinted at more hardware innovations currently being explored. She referred to “another choice in addition to our next-gen hardware,” suggesting Xbox isn’t limiting itself to traditional consoles. This could point toward renewed interest in portable or hybrid systems, similar to the Asus ROG Xbox Ally – a handheld built through a collaboration with Microsoft that’s designed to extend Xbox gaming to mobile hardware.
However, earlier reports claimed Microsoft scrapped its in-house handheld project after AMD set extremely high production targets for its processors. Bond didn’t address those rumours directly but did make it clear that the company is “always listening to what players and creators want” and intends to “meet people where they are.”
The message from Microsoft is clear: console gaming remains part of Xbox’s long-term strategy, even as the company continues to expand into the PC and cloud markets.
From a strategic point of view, this makes sense. I’ve followed the Xbox hardware cycle since the original console, and what’s happening now feels like a return to the kind of long-term platform vision the brand had in the early Xbox 360 era, a renewed focus on hardware identity rather than simply software access.
Whether this next Xbox console ends up being the most powerful system ever made or a hybrid between console and cloud remains to be seen, but the intent is now undeniable.