The last few years have been weird Xboxand indeed the console market as a whole. Microsoft seems to have conceded the battle of exclusivity that was so central to the so-called console wars and brought a flagship IP like Gears of War and Forza on PlayStation, p Halo he will soon join them. This, along with the declining market share of the Xbox Series X|S, has led many to believe that Microsoft is trying to get out of the hardware business entirely.
This story is not entirely new; people speculated that Xbox would shift its priorities to software already in the PS4/Xbox One era. Such theories mostly stem from Microsoft's apparent reluctance to throw its full weight behind powerful exclusives, bucking the strategy used by Nintendo and Sony, though the company itself has usually pushed back against such claims and reaffirmed its commitment to strong first-party games. However, that is not the case today, as Microsoft Gaming CEO Phil Spencer has thrown cold water on the exclusive strategy in the aftermath RedfallA historic failure, and Xbox president Sarah Bond recently renounced the practice, calling it “outdated.” At the same time, both Bond and Spencer say that Xbox won't fully utilize the console space, although the company's next steps may not be what some expect.
What we really know about the next 'Xbox'
Before anything else, it is worth touching on what has actually been confirmed by official channels, AKA Xbox and its partners. For one thing, we know that Microsoft is indeed making another home console – there's no doubt about that at this point, as Bond has confirmed it himself. Just last summer, the Xbox president announced the company's multi-year partnership with AMD for its “next-generation hardware lineup for consoles, handhelds, PCs, cloud and accessories.” This partnership recently manifested itself in the ROG Xbox Ally, an enthusiast-level handheld with lots of strings attached.
In the same AMD partnership announcement, Bond's language was quite focused on the themes of seamlessness, cloud gaming and gaming services, declaring his intention to make Windows, not Xbox, “the number one platform for gaming”. For many, this was seen as a commitment to the Xbox as a whole, much like Apple has developed connectivity and feature parity across its various devices. This interpretation is supported by the ROG Xbox Ally, which, despite its name, is a Windows 11 handheld, not a miniaturized Xbox Series X or S. Understanding this framework is useful in analyzing Xbox's business strategy and predicting where the company will go next.
Windows 11 and cloud gaming will be an integral part of Xbox Next Home
Last year, before ROG Xbox Ally was officially announced, Windows Central's Jez Corden reported that Xbox had internally shelved a long-rumored proprietary handheld that was reportedly being developed alongside ROG Xbox Ally. Corden's report claims that Xbox still plans to release this first-party device, but that the company will focus on optimizing Windows 11 for gaming in the meantime.
The same report claims that Microsoft is also working on “next-generation Xbox cloud systems,” which seems especially likely given the company's Play Anywhere campaign. This suggests that the next Xbox will be cloud-centric, perhaps built more on network capabilities than native performance. However, other information suggests that system power is still a priority for Microsoft.
Corden later announced that “the next Xbox will essentially be a full-fledged Windows PC” and that it will be compatible with “third-party stores like Steam, GOG, and Epic.”
The next-gen Xbox could launch as early as 2027, says AMD
In a recent earnings call, AMD CEO Lisa Su commented on AMD's Steam Machine development before touching on the development of the next Xbox console: “Microsoft's next-gen Xbox development with AMD's semi-custom SoC. [system on a chip] is progressing well and supports a 2027 launch.” As others have noted, this doesn't necessarily mean that Microsoft's next console will launch in 2027, but according to AMD's estimates, it would theoretically be possible.
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Another Xbox APU was potentially leaked
In Fall 2025, YouTuber Moore's Law Is Dead revealed what he claimed to be the specs for the next Xbox APU, or Accelerated Processing Unit:
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144 mm² SoC (N3P) + 264 mm² GPU (N3C/P) = 408 mm²
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Likely 250-350W TDP (estimate, not 100%)
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68 x RDNA 5 CU (disabled up to 70 CU)
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4 Shader Engines Total = 3 x 9 WGP + 1 x 8 WGP
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Each Shader Engine has 2 x Shader Arrays 4) At least 24 MB L2 cache for GPU
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Up to 3 x Zen 6 + 8 x Zen 6c with 12 MB L3 cache
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192-bit memory bus with up to 48 GB GDDR7
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NPU with up to 110 TOPS @ 6 W or 46 TOPS @ 1.2 W (2 power consumption modes)
As always, these kinds 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, it correctly predicted elements of the PS5 Pro and Sony's PSSR upscaling software, which suggests some level of credibility. He also claimed that this APU will be ready for launch in 2027, which is in line with the official story from AMD itself.
What does this information tell us about the next Xbox?
Putting all of the above information together, it's safe to say that Xbox will lean heavily on further parity between console and PC and develop Windows 11 as a hub for gaming. One need look no further than the ROG Xbox Ally to see that this is likely: the handheld is a dedicated Windows device, signaling Xbox's desire to bring more players into this ecosystem rather than getting back into the ring with competing consoles. There's also the fact that the Xbox Windows launcher has been updated to include games from Steam, GOG and EGS, which suggests a further desire to appeal to the PC crowd.
There will almost certainly be another Xbox, but it probably won't be like the ones 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 sizable global PC market is a much smarter move, especially since Microsoft is already a pillar of that market. However, a lack of RAM and economic conditions will likely prevent the next Xbox from being released in 2027. A better bet would be a 2030 launch or later; until then, Xbox could further rebrand itself as a bridge between PC and console gaming.
