Your next Xbox might not even be made by Microsoft

By Varun Mirchandani Published February 9, 2026

The next generation of Xbox may not be just one console sitting under your TV. According to reports from Windows Central, Microsoft has locked in plans for a 2027 next-gen Xbox, but the bigger shift could be how it’s built and who builds it.

Instead of a single, fixed design, Microsoft is reportedly exploring a PC-style approach, where traditional partners (like ASUS and Lenovo) could release their own Xbox-branded hardware. Think of it as offerings in different sizes, power levels, and prices. One model might be compact or handheld, another a high-end performance beast, while Microsoft sets the platform rules and software layer. In other words, Xbox may start to look less like one console and more like an ecosystem.

Previous reports suggest Microsoft wants future Xbox devices to lean heavily on Windows 11, making it easier to share storefronts, libraries, and development tools across consoles, handhelds, and PCs. We’ve already seen an early preview of this thinking with the ROG Xbox Ally, a handheld built in partnership with ASUS. It runs Windows 11 but boots into the Full-screen Xbox experience first, only transforming into a full desktop when manually triggered. However, that also means it carries some PC quirks, from clunky navigation to performance overhead. Microsoft is reportedly learning from those rough edges, working toward a cleaner, controller-first experience that feels more console-like before the 2027 hardware arrives.

There’s also the pricing reality. Thanks to rising memory costs and AI-driven supply crunches, the next-gen Xbox may not come cheap, with estimates suggesting premium models could edge toward $800 or even $1,000. That sounds steep, but Microsoft’s multi-device strategy could soften the blow, with cheaper partner options sitting alongside premium models.

The silver lining is longevity. If new hardware gets pricier and more PC-like, today’s Xbox Series X and Series S aren’t likely to be dropped anytime soon. One can expect longer support cycles and developers continuing to ship games for current-gen systems rather than forcing everyone to upgrade immediately. Long story short, the next Xbox era may not be about replacing your console overnight. Instead, it may be about choice: pick the power, price, and shape that fits your setup, and keep playing either way.