Phil Spencer, head of Microsoft Gaming, has confirmed that the next-generation Xbox console will be an in-house project developed and designed by Microsoft. The confirmation came during an interview with Famitsu, addressing the growing speculation about Xbox’s future hardware plans following the release of the ASUS ROG Ally Xbox Edition.
The announcement follows comments from Xbox president Sarah Bond, who recently stated that Microsoft is “100% looking at making things in the future” and that work on next-generation hardware is already in progress. Her remarks came after reports suggested that Xbox might be stepping away from producing first-party console hardware. Bond’s choice of words appeared deliberate, hinting at ongoing development without revealing specific details about the product or its timeline.
In his discussion with Famitsu, Spencer clarified that while the ASUS ROG Ally would be the next hardware launch associated with the Xbox brand, the next first-party hardware directly from Microsoft will be the next-generation Xbox console. This statement confirms that the upcoming console will be an in-house effort, reaffirming Microsoft’s continued commitment to developing its own gaming systems rather than outsourcing design and production to partners.
This also implies that Microsoft does not plan to release a first-party handheld gaming PC before the launch of its next major console, which industry analysts expect around 2027. However, this timeline does not exclude ASUS from continuing its ROG Ally series under the Xbox brand. The collaboration between Microsoft and ASUS has strengthened Xbox’s presence in the handheld gaming market without requiring the company to manage hardware production directly.
Earlier rumors had suggested that Microsoft was once developing a dedicated handheld gaming device internally, but later shifted that effort to ASUS. This partnership led to the development of the ROG Ally, which integrates Xbox Game Pass and cloud gaming services as part of its core experience. Spencer’s comments make it clear that Microsoft’s primary focus remains on its next console generation rather than a standalone handheld system.
Meanwhile, Sony is believed to be preparing both a new home console and a handheld device, each reportedly powered by custom AMD chips. This approach signals a renewed competition between the two gaming giants, with both aiming to expand their ecosystems across multiple hardware platforms.
For now, Microsoft’s next-generation Xbox continues to take shape under internal development teams. The company’s renewed focus on its console hardware suggests that it intends to maintain control over the design, performance, and ecosystem integration of its gaming platform. With a potential launch expected within the next few years, the next Xbox could define the direction of Microsoft’s gaming strategy for the next decade.
