Microsoft Confirms Next-Gen Xbox and Expands Into Handheld Gaming

• Microsoft is developing its next-generation Xbox console.
• The company is expanding handheld gaming through ASUS ROG Xbox Ally.
• Xbox aims to offer gamers more hardware choices, including handhelds.

Microsoft has officially confirmed it is working on the next-generation Xbox console, signaling that traditional home consoles remain a core part of its gaming future. Alongside this, the tech giant is broadening its reach into handheld gaming, building on its collaboration with ASUS through the ROG Xbox Ally series.

In a recent interview with Variety, Xbox president Sarah Bond shared insights into Microsoft’s growing hardware plans. She confirmed that next-gen Xbox hardware is already in the works, with design and prototyping underway. Microsoft is partnering with AMD for this platform and is focused on delivering cutting-edge performance.

While the ASUS ROG Ally has received strong positive feedback, Bond made it clear that handheld devices are not replacing consoles. Instead, they are an extension of the Xbox ecosystem. “We are always listening to players and creators. When there’s demand, we build”, Bond said.

The company’s Handheld Compatibility Program will also expand, opening the door for more devices, from other manufacturers like Lenovo, to run Xbox’s full-screen experience (FSE). The upcoming Lenovo Legion Go 2 is one such device.

Also Read: Opportunities for Indian Businesses in Web3 and Metaverse Economies

Though Microsoft hasn’t revealed detailed specs, reports suggest the next Xbox may adopt a modular, upgradeable design, similar to a gaming PC powered by a chip codenamed 'Magnus'.

Microsoft’s goal is to offer versatile options, high-performance consoles for power users, and portable gaming solutions for those who prefer flexibility.