Xbox Boss Shuts Down “No More Consoles” Rumours: Next-Gen Hardware Already in The Works

Microsoft is officially building its next-generation Xbox hardware, Xbox president Sarah Bond confirmed, putting an end to wild speculation that the company might be exiting the console race. This comes after weeks of unease among Xbox fans, who’ve been left guessing thanks to swirling rumours and some mixed messages from the company.

Bond dropped the news in a conversation with Variety timed to the release of the new handheld ROG Xbox Ally. “We are 100 percent looking at making things in the future,” Bond said, emphasising that “our next-gen hardware [is] in development. We’ve been looking at prototyping, designing. We have a partnership we’ve announced with AMD around it, so that is coming.”

The recent rumours caught fire after Microsoft hiked the price of Xbox Game Pass Ultimate. That move stoked speculation that Microsoft was winding down traditional console efforts and shifting focus entirely to services and multi-platform gaming. Fuel was added by the company’s own “This is an Xbox” campaign and their big push to make Xbox games available nearly everywhere. But Bond’s remarks are a direct answer: the company isn’t abandoning hardware innovation any time soon.

New Hardware, More Choices – But Some Mixed Messages

Bond says the goal is all about choice. “We want to make sure there’s an option for the power players who want the latest innovations, who want to push the edge of what’s possible, the most demanding players.” For others, there’s the new handheld. “If someone is looking for PC gaming on the go, they’re a casual gamer, they’re a gaming enthusiast, then there’s Xbox Allys for them. Giving multiple choices for people, so we can actually meet people where they are.”

The ROG Xbox Ally is Microsoft’s latest collaboration with Asus, a handheld PC formally positioned as an Xbox-branded device. It’s pitched as opening up new ways to play, but its steep price tag and true market position have sparked debate. Critics point out that the Ally feels more like a high-powered Windows handheld dressed up as an Xbox than a true console alternative for the masses.

Eurogamer’s Tom Orry didn’t mince words in his review, calling it “an impressive handheld PC wearing an Xbox mask.” That echoes the sentiment from Eurogamer’s Alex Donaldson, who can’t help but yearn for the “distant heyday” of Xbox. Meanwhile, the messaging around what exactly Xbox is selling right now, console, PC, handheld, or something else, remains muddy for a lot of longtime players.

The Rumour Mill and Xbox’s Future

It’s been a confusing few months for Xbox fans. The Game Pass price uptick, ongoing rumours of a retreat from console hardware, and Microsoft’s own push to make “Xbox” more of a service than a device have left the player base searching for clarity. The company hasn’t helped matters, with major layoffs and several game cancellations further clouding the conversation about Xbox’s long-term vision.

Bond’s new comments are laser-focused on reassuring core fans that hardware isn’t going anywhere. The AMD partnership around next-gen silicon signals a continued investment in bleeding-edge performance. But perceptions remain split, with some seeing the new hardware options as a clear win for consumer choice and others worrying that Xbox is losing sight of its identity in an attempt to be everything to everyone.

For now, the only certainty is that Microsoft is actively prototyping and designing what comes next. The specifics are a mystery, but it’s crystal clear: the next Xbox console is happening, and the company wants loyal players, both old-school and new, to know it.