The Next-Generation Xbox Is Officially in the Works, Microsoft Confirms Xbox President Sarah Bond reveals that the next generation of Xbox hardware is being designed and prototyped, confirming long-running rumors about Microsoft’s future console plans

The next era of Xbox gaming is officially on the horizon.

In a recent interview, Xbox President Sarah Bond confirmed that Microsoft’s next-generation Xbox console is currently in development — putting an end to months of speculation about the company’s future hardware plans.

🏗️ Xbox’s Next Console Is in the Works

Bond revealed that the Xbox team has already begun designing and prototyping the new console. While she didn’t share specifics about specs or release timelines, Bond did confirm that AMD is playing a major role in its development.

“We have our next-gen hardware in development,” Bond stated, adding that more details about the AMD partnership will be announced soon.

This aligns with earlier leaks suggesting that AMD is building the largest APU ever made for a gaming console, which could potentially allow the next Xbox to outperform the upcoming PlayStation 6, which also uses AMD components.

💡 What We Know So Far

While Microsoft hasn’t revealed an official name or design, several points are now clear:

The next-gen Xbox is actively in development at Microsoft.
AMD is confirmed as the hardware partner.
The system is still in the early design and prototype stage.
Microsoft may also be developing additional hardware options beyond its main console line.

Bond’s comments also hinted at new device categories, saying Xbox wants to “bring gamers another choice, in addition to our next-gen hardware.” This statement sparked speculation about whether Microsoft might revisit plans for an in-house handheld device.

🔍 Rumors About Xbox’s Handheld

Reports earlier this year claimed that Microsoft canceled an internal handheld project after AMD’s production requirements became too demanding. However, Bond’s new comments suggest the idea isn’t completely off the table.

If Microsoft is indeed exploring portable gaming again, it would join the growing handheld market alongside the ASUS ROG Ally, Steam Deck, and Nintendo Switch 2 — giving Xbox players more ways to access Game Pass and cloud gaming on the go.

📉 The State of Xbox Hardware

The confirmation comes at a time of mixed performance for Microsoft’s gaming division.

💰 Xbox Game Pass hit record revenue in fiscal year 2024.
📉 Hardware sales, however, fell by 22% during the same period.

Meanwhile, price increases for both hardware and Game Pass subscriptions have drawn criticism from fans, creating pressure for Microsoft to deliver strong value with its next console launch.

🧩 What’s Next for Xbox

Bond’s confirmation reassures fans that Microsoft remains committed to console gaming — even as the company expands its ecosystem across PC, cloud, and mobile platforms.

While the next-gen Xbox is still likely years away, its early development marks an important step in defining the future of Xbox. Between powerful AMD hardware, evolving subscription services, and potential new devices, the next generation may offer the most flexible Xbox experience yet.