Microsoft Teases "Next-Gen" Xbox Hardware in Development

As of October 22nd, 2025, Microsoft has revealed that it is actively working on "next-gen hardware" for the Xbox platform. In an interview with Variety, Microsoft's Matt Bond discussed the company's plans for the future of Xbox, including the development of new console hardware.

"We are 100 percent looking at making things in the future," Bond stated. "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."

This announcement comes after recent rumors suggested that Microsoft was moving away from developing new Xbox hardware. However, the company has firmly denied these rumors, reaffirming its commitment to future first-party consoles and devices.

Alongside the next-gen Xbox plans, Microsoft also highlighted the recently unveiled Asus ROG Xbox Ally handheld as an innovative new gaming choice for players. "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," Bond explained.

While Microsoft has not yet officially announced the details of its next-gen Xbox, industry rumors suggest that the console, along with the PlayStation 6, could target a 2027 launch and be more powerful than the current generation of hardware.