Microsoft Reaffirms Xbox Hardware Future as Next-Gen Console Development Begins

Microsoft confirms its next-generation Xbox console is now in development, continuing partnership with AMD.

Sarah Bond Confirms New Xbox Console — Ending Exit Rumours Once and For All

After months of speculation surrounding Microsoft’s hardware future, Xbox President Sarah Bond has confirmed that the next-generation Xbox console is officially in development. The statement effectively shuts down persistent rumours that the company was preparing to step away from the console business.

Speaking with Variety, Bond shared that Microsoft is already designing and prototyping its next console, while gathering feedback from both developers and players to shape its future direction. The new system will continue to be powered by AMD technology, which has formed the foundation of the consoles for nearly a decade.

Bond described the project as a continuation of the long-term vision to deliver “choice and innovation” — a line that suggests Microsoft isn’t just chasing raw power, but also looking to redefine what a console can be.

No Specs Yet, But the Message Is Clear

While no hardware specifications, design details, or release window have been shared, Bond’s comments put to rest one of the biggest industry rumours of 2025 — that Microsoft planned to pivot away from consoles entirely, focusing instead on handheld PCs and third-party publishing.

That theory, it seems, can now be laid to rest. Xbox will remain a dedicated console brand in the next generation.

New Xbox Console

The confirmation comes at a time when the brand’s position in the market has faced mounting scrutiny. Despite the Series X being one of the most powerful consoles available, Microsoft has struggled to close the gap against competitors.

Mass layoffs, studio closures, and the cancellation of multiple projects have added to concerns about the company’s internal direction. A recent price hike for Xbox Game Pass also sparked criticism, with some players questioning whether Microsoft was losing focus on its core audience.

What Comes Next for Xbox

It’s unclear whether the next-generation system will follow the dual-console strategy of the Series X and Series S, or streamline into a single model. Regardless, Bond’s confirmation makes one thing clear: the green brand isn’t going anywhere.

With new leadership and a fresh generation on the horizon, Microsoft is once again positioning Xbox as a long-term player, but whether this will convince consumers remains to be seen.

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