Microsoft Will Launch First-party Next-Gen Xbox Console
2025 has been a rocky year for Xbox so far. There have been widespread layoffs, canceled internal projects, growing frustration over Game Pass, and console price hikes.
Reports from yesterday gave a sneak peek at why this turbulence hit Microsoft’s gaming division. Apparently, the company directed the Xbox division to squeeze in a 30% profit margin. Now, Xbox leadership is trying to reset the narrative.
In an interview with Famitsu, Xbox chief Phil Spencer directly addressed concerns about the company’s hardware roadmap (via Windows Central). He confirmed that the next Xbox console will indeed be a first-party Microsoft product.
Spencer’s remarks follow confusion among fans who were frustrated by rumors that Xbox might fully transition towards cloud gaming or third-party licensing. “The hardware that we [Microsoft] will announce as the first party will be the next console,” Spencer said, reaffirming that the company isn’t abandoning its core hardware business.
While Spencer stopped short of revealing a launch window, Xbox console generations typically last around seven years. So, you can expect the next release somewhere between 2027 and 2028.
He also hinted that Microsoft’s hardware vision might expand beyond traditional consoles, referring to the newly announced ROG Ally X series. Spencer called it an example of how the Xbox software platform could “connect all devices at one point.”
Despite the turbulence, both Spencer and Xbox president Sarah Bond remain vocal that the brand’s future lies in premium hardware experiences, not just cloud streaming or services. For now, Xbox fans can breathe a little easier, as the next console is coming, and it’s being built in-house.
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