Microsoft Signals Xbox Evolution With Next-Generation Consoles

Microsoft is developing next-generation Xbox hardware while simultaneously expanding into handheld gaming, a dual strategy aimed at broadening its reach beyond traditional console players.

Xbox President Sarah Bond confirmed the company's hardware roadmap in a recent interview with Variety, saying Microsoft is "100% looking at making things in the future" and actively engaged in prototyping and design work. The remarks came alongside the announcement of the ROG Xbox Ally handheld, developed through a partnership with ASUS.

The handheld device targets mobile and casual gamers, a segment Microsoft has historically underserved. Ms. Bond characterized early reception as "overwhelming," citing strong pre-launch sales and rapid sellouts at various retailers, including the Xbox Store. She emphasized that the portable system would complement rather than cannibalize the company's console business.

Xbox Next-Generation Console Development and AMD Partnership

"We aim to serve both high-performance console enthusiasts and casual or mobile gamers," Bond said, noting that AMD is collaborating on the next-generation console hardware. The console remains in deep prototyping and design stages, though specific performance targets and features have not been disclosed.

The announcement follows recent speculation about Xbox's retail presence after reports emerged that some U.S. retailers had scaled back their console inventory. Microsoft disputed those accounts, maintaining that major retail chains remain committed to carrying Xbox Series X and S consoles. The company specifically refuted claims that Costco Wholesale Corp. had removed the devices from stores in the U.S. and U.K.

Industry analysts view Microsoft's approach, pursuing both cutting-edge console technology and portable gaming hardware, as a response to shifting consumer preferences and intensifying competition from Sony's PlayStation and the success of Nintendo's Switch platform.

The strategy could help Microsoft capture market share in the growing handheld gaming segment while retaining its core console audience, according to industry observers. Strong execution and continued innovation will be critical to determining the impact of the dual-hardware approach.