
The last few years have been unusual for Xbox, and for the console market in general. Microsoft appears to be shifting its strategy, moving away from exclusive games – a key part of the traditional console competition – and even bringing popular franchises like Gears of War and Forza to PlayStation, with Halo following soon. Combined with the Xbox Series X|S selling fewer units, this has led many to speculate that Microsoft might be planning to stop making consoles altogether.
The idea that Xbox is focusing more on software than hardware isn’t new – people have been discussing it since the days of the PlayStation 4 and Xbox One. This came about because Microsoft seemed hesitant to invest heavily in exclusive games, unlike Nintendo and Sony, though Microsoft often denied these claims and said they were still committed to strong first-party titles. However, things have changed recently. Following the poor launch of Redfall, Microsoft Gaming CEO Phil Spencer has downplayed the importance of exclusives, and Xbox President Sarah Bond recently called the strategy “antiquated.” Despite this shift, both leaders insist Xbox isn’t abandoning consoles altogether, but their future plans might surprise some fans.
What We Really Know About the Next ‘Xbox’
Let’s start with what Xbox and its partners have officially confirmed. It’s now certain that Microsoft is working on a new home console, as confirmed by Xbox head Bond. Last summer, he announced a multi-year partnership with AMD to develop the next generation of hardware for consoles, handhelds, PCs, cloud gaming, and accessories. We’ve already seen a result of this partnership with the ROG Xbox Ally, a high-end handheld PC, though it does come with some limitations.
During the announcement of their partnership with AMD, Microsoft’s Phil Spencer emphasized a smooth, connected gaming experience, particularly through cloud gaming and gaming services. He stated their goal is to make Windows, rather than the Xbox console itself, the leading platform for gaming. Many see this as a commitment to Xbox as a whole ecosystem, similar to how Apple creates a unified experience across all its devices. The ROG Xbox Ally exemplifies this approach – it’s a Windows 11 handheld PC, not a smaller version of the Xbox Series X or S. Keeping this in mind is key to understanding Microsoft’s gaming strategy and anticipating its future plans.
Windows 11 and Cloud Gaming Will Be Integral for Xbox’s Next Home Device
Before the ROG Xbox Ally was officially revealed, Jez Corden from Windows Central reported that Xbox had put its own handheld gaming device on hold. This device had been in development for some time, and Xbox is still planning to release it in the future. However, the company is currently prioritizing improvements to Windows 11 for gaming.
The report also suggests Microsoft is developing advanced cloud technology for Xbox, which makes sense considering their Play Anywhere feature. This hints that the next Xbox might rely more on cloud capabilities than raw processing power. However, other sources indicate Microsoft still considers powerful hardware important.
James Corden shared that the next Xbox will function much like a complete Windows computer, and will work with game stores like Steam, GOG, and Epic Games Store.
The Next-Generation Xbox Could Launch as Soon as 2027, AMD Says
During a recent earnings discussion, AMD CEO Lisa Su provided an update on the Steam Machine and then mentioned Microsoft’s next Xbox console. She stated that development of the new Xbox, which will use a custom AMD chip, is on track for a potential launch in 2027. However, as others have pointed out, this doesn’t guarantee a 2027 release; it simply means AMD believes the console could launch then, according to their current assessment.
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The Next Xbox APU Was Potentially Leaked
In Fall 2025, the YouTuber Moore’s Law Is Dead shared details about what he believes are the technical specifications for the next Xbox’s processor – a combined CPU and GPU 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)
It’s important to remember that leaks like these should be viewed cautiously. Moore’s Law Is Dead has made predictions before, and not all have turned out to be accurate. However, they did correctly forecast details about the PS5 Pro and Sony’s PSSR technology, giving them some reliability. Their claim of a 2027 release for this new processor also matches what AMD has officially stated.
What Does This Information Tell Us About the Next Xbox?
Considering everything, Xbox is clearly focused on making gaming experiences consistent between consoles and PCs, and is positioning Windows 11 as a central place for gamers. The ROG Xbox Ally handheld, which runs on Windows, is a strong indication of this strategy – Xbox seems more interested in expanding its reach within the Windows gaming world than directly competing with other consoles. The recent update to the Xbox app on Windows, which now includes games from platforms like Steam, GOG, and the Epic Games Store, further supports this move to attract PC gamers.
While another Xbox is highly likely, it will probably be quite different from previous models. Xbox isn’t expected to outsell Sony or Nintendo in the console market, so focusing on the large PC gaming market makes more sense – and Microsoft is already a major player there. However, due to parts shortages and the current economy, a new Xbox likely won’t arrive until after 2027, and a launch around 2030 or later seems more realistic. By then, Xbox could position itself as a way to connect PC and console gaming experiences.
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2026-02-07 17:05