Next-gen Xbox will be a first-party device designed by Microsoft, similar to other consoles

UPDATE: Microsoft CEO Satya Nadella confirms the new Xbox will "innovate" on both console and PC, seeming to confirm reports that the new Xbox will be a Windows 11-powered PC device that simulates a console experience.

The next Xbox console will be a first-party system designed by Microsoft, Xbox gaming CEO Phil Spencer tells Famitsu.

3

PC manufacturers like ASUS may be involved with the Xbox Ally X, but that apparently won't be the case for Microsoft's next-gen console lineup. In a new interview with Japanese games outlet Famitsu, Microsoft Gaming boss Phil Spencer says that next first-party hardware will be considered the "next console." This is an interesting phrase that may tie into reports of the next Xbox also being able to launch Windows PC games.

"Speaking of new hardware, the ROG Xbox Ally [...] is an ASUS product. I think that the hardware that we announce as a first-party company at Microsoft will be the next console," Spencer said, as translated through Google and corroborated by native Japanese-speaking news aggregator Genki_JPN.

3

Previous speculation on Xbox's plans insisted that Microsoft could stop making consoles altogether, instead conscripting OEMs like ASUS, Lenovo, MSI, and GIGABYTE to make the products. The idea would be that the new Xbox systems would be Windows PCs that also happened to boot up the custom Xbox console OS to launch console-native games. These reports remain speculative and unclear, and Xbox management has not taken up opportunities to clear things up.

Xbox president Sarah Bond did recently confirm that new Xbox consoles are still planned, re-affirming commitments that were previously made with a multi-year deal with AMD.

"We are 100% looking at making things in the future. We have our next-gen hardware in development. We've been looking at prototyping, designing. We have a partnership we've announced with AMD around it, so that is coming.

"What we saw [with the ROG Xbox Ally and Ally X] was an opportunity to innovate in a new way and to bring gamers another choice, in addition to our next-gen hardware.

"We are always listening to what players and creators want. When there is demand for innovation, we're going to build it."

In a separate interview with Mashable, the Xbox president also confirmed that the new console would be a "very premium" device, indicating a potentially steep price tag.

"The next-gen console is going to be a very premium, very high-end curated experience. You're starting to see some of our thinking in this handheld, but I don't want to give it all away."

Microsoft is co-engineering new custom AI-powered chips to power its new next-gen lineup, which doesn't just include consoles:

"We're investing in a next-generation hardware lineup across console, handheld, PC, cloud, and accessories," Microsoft said of their next-gen plans.