These past few years have been weird for Xbox, and indeed the console market as a whole. Microsoft seems to have conceded the battle of exclusives, which has been so central to the so-called console wars, bringing flagship IP like Gears of War and Forza to PlayStation, with Halo soon to join them. This, coupled with the Xbox Series X|S's dwindling market share, has led many to believe that Microsoft is looking to bow out of the hardware business altogether.
This narrative isn't exactly new; people were speculating about Xbox shifting its priorities to software as early as the PS4/Xbox One era. Such theories stem mostly from Microsoft's apparent reluctance to throw its full weight behind powerful exclusives, bucking the strategy employed by Nintendo and Sony, although the company itself usually pushed back on such claims, reaffirming its commitment to strong first-party games. But that's not the case today, with Microsoft Gaming CEO Phil Spencer throwing cold water on the exclusives strategy in the wake of Redfall's historic failing, and Xbox President Sarah Bond more recently disavowing the practice, calling it "antiquated." At the same time, Bond and Spencer both maintain that Xbox will not be tapping out of the console space completely, though the company's next steps may not be what some are expecting.
What We Really Know About the Next 'Xbox'
Before anything else, it's worth touching on what has actually been confirmed through official channels, AKA Xbox and its partners. For one thing, we know that Microsoft is indeed making another home console—that much is beyond question at this point, having been confirmed by Bond directly. Just last summer, the Xbox president announced the company's multi-year partnership with AMD for its "next-generation hardware lineup, across console, handheld, PC, cloud, and accessories." This partnership recently manifested in the ROG Xbox Ally, an enthusiast-level handheld PC with a lot of strings attached.
In that same AMD partnership announcement, Bond's language focused quite a bit on themes of seamlessness, cloud gaming, and gaming services, declaring an intention to make Windows, not Xbox, "the number one platform for gaming." For many, this read as a commitment to Xbox as a broader entity, much like how Apple has developed interconnectivity and feature parity across its various devices. This interpretation is supported by the ROG Xbox Ally which, despite its name, is a handheld PC running Windows 11, not a miniaturized Xbox Series X or S. Understanding this framework is helpful when analyzing Xbox's business strategy, and predicting where the company will go next.
Windows 11 and Cloud Gaming Will Be Integral for Xbox's Next Home Device
Last year, before the official announcement of the ROG Xbox Ally, Windows Central's Jez Corden reported that Xbox had internally delayed a long-rumored proprietary handheld, which was allegedly being developed alongside the ROG Xbox Ally. Corden's report claims that Xbox still plans to release this first-party device eventually, but that the company would be focused on optimizing Windows 11 for gaming in the meantime.
The same report claims that Microsoft is also working on "next-gen Xbox cloud systems," which seems especially plausible given the company's Play Anywhere campaign. This suggests that the next Xbox will be cloud-focused, perhaps built more around network capabilities than native power. Still, other intel indicates that on-system power is still a priority for Microsoft.
Corden would later report that "the next Xbox is essentially going to be a full Windows PC," and that it will be compatible with "third-party stores like Steam, GOG, and Epic."
The Next-Generation Xbox Could Launch as Soon as 2027, AMD Says
In a recent earnings call, AMD CEO Lisa Su commented on the progress of the AMD-powered Steam Machine before touching on the progress of Xbox's next console: "development of Microsoft's next-gen Xbox featuring an AMD semi-custom SoC [system on a chip] is progressing well to support a launch in 2027." As others have noted, this doesn't necessarily mean that Microsoft's next console will launch in 2027, just that it would theoretically be able to, per AMD's estimation.
Who’s That Character?
Identify the silhouettes before time runs out.
Identify the silhouettes before time runs out.
The Next Xbox APU Was Potentially Leaked
In Fall 2025, YouTuber Moore's Law Is Dead unveiled what he claimed are the specs for the next Xbox's APU, or accelerated processing unit:
- 144mm² SoC (N3P) + 264mm² GPU (N3C/P) = 408mm²
- Likely 250-350W TDP (estimation, not 100%)
- 68 x RDNA 5 CUs (disabled from up to 70 CU)
- 4 Shader Engines Total = 3 x 9 WGP + 1 x 8 WGP
- Each Shader Engine has 2 x Shader Arrays 4) At least 24MB L2 cache for the GPU
- Up to 3 x Zen 6 + 8 x Zen 6c with 12MB L3 cache
- 192-bit memory bus with up to 48GB of GDDR7
- NPU with up to 110 TOPS @ 6W or 46 TOPS @ 1.2W (2 Power Consumption Modes)
Like always, these sorts of leaks should be taken with a grain of salt—Moore's Law Is Dead has made a number of predictions in the past, and not all of them have been true. However, he did correctly predict elements of the PS5 Pro and Sony's PSSR upscaling software, which suggests some level of credibility. He also claimed that this APU would be ready for launch in 2027, which aligns with the official story from AMD itself.
What Does This Information Tell Us About the Next Xbox?
Synthesizing all of the above information, it's safe to say that Xbox will be leaning heavily into further parity between console and PC, developing Windows 11 as a hub for gaming. One needs to look no further than the ROG Xbox Ally to see that this is probable: the handheld is a dedicated Windows device, signaling Xbox's desire to bring more gamers into that ecosystem rather than get back in the ring with competitor consoles. There's also the fact that the Xbox Windows launcher was updated to include games from Steam, GOG, and EGS, suggesting a further desire to appeal to the PC crowd.
There will almost certainly be another Xbox, but it probably won't be like those that came before it. At this stage, Xbox has little to no chance of surpassing Sony and Nintendo in terms of console sales, so tapping into the substantial global PC market is a much smarter move, especially since Microsoft is a pillar of that market already. RAM shortages and economic conditions will likely preclude a 2027 release for the next Xbox, though. A better bet would be on a launch near or after 2030; by that time, Xbox may have further rebranded itself as a bridge between PC and console gaming.