Tuesday, October 21st 2025
Xbox Boss Confirms Future In-House Hardware Still Planned After ASUS ROG Xbox Ally Sparks Confusion
When news first broke about the ASUS Xbox Ally gaming handheld, there was a lot of talk about Xbox abandoning its first-party hardware in favor of similar partnerships. Recent rumors refuted these suppositions already, but now a more official statement has been made by Sarah Bond, president of Xbox, in an interview with Variety. The executive explained that the decision to partner with ASUS for the Xbox Ally because the two could innovate and "transform the experience" more quickly and more innovatively working together rather than separately.
Bond goes on to say that, while the ASUS ROG Xbox Ally is meant to be just one tool in the Xbox gaming arsenal and that Xbox has not wavered in its development of next-gen console hardware. "We are 100% looking at making things in the future... We have our next-gen hardware in development." She also emphasized Microsoft's partnership with AMD, which was only just announced in June 2025 and would see the two companies collaborate to combine "the power of Ryzen and Radeon for consoles, handhelds, PCs, and cloud." She goes on to comment that there's "more innovation to come," hinting that Xbox would lean further into its handheld development, which will seemingly materialize in both hardware and software. Currently, it is expected that the next-gen Xbox console will arrive in 2027.
Source:
Variety
Bond goes on to say that, while the ASUS ROG Xbox Ally is meant to be just one tool in the Xbox gaming arsenal and that Xbox has not wavered in its development of next-gen console hardware. "We are 100% looking at making things in the future... We have our next-gen hardware in development." She also emphasized Microsoft's partnership with AMD, which was only just announced in June 2025 and would see the two companies collaborate to combine "the power of Ryzen and Radeon for consoles, handhelds, PCs, and cloud." She goes on to comment that there's "more innovation to come," hinting that Xbox would lean further into its handheld development, which will seemingly materialize in both hardware and software. Currently, it is expected that the next-gen Xbox console will arrive in 2027.

20 Comments on Xbox Boss Confirms Future In-House Hardware Still Planned After ASUS ROG Xbox Ally Sparks Confusion
Lord bless these clumsy, disorganized, too-resourceful for its own good companies.
Blundering fools haven't made a single piece of successful hardware in their lives other than a mouse and keyboard. The only success they have is making a closed garden x86 PC enclosed in a black piece of plastic that can play a few games... and then they proceed to kill its unique selling points by porting everything to the PC. Its hilariously bottom barrel really if you consider how long and how much was invested at this point. Similarly, they have tons of studios... and there's barely solid content coming out of them, let alone something unique.
Games For Windows Live.... on endless repeat.I can't wait for them to start bundling Kinect again and forcing always online. Or some weak sauce derivative of the Hololens. Popcorn moments!
Although a 30 dollar/mo cloud gaming subscription gets pretty close to this insanity, tbf
What you see here is a failure of a strategy coming to fruition - failing as expected. People don't understand why they need an xbox branded Ally to begin with. The OG version already ran all their shit and gets similar software.
To add to ally x woes it's faster with Linux on it windows is still to fat Microsoft need to do lots more in this regard.
I watched some reviewers calling it a victory for MS being on par with Linux installs on the Ally X, I got zero clue who would think that a game running through proton being on par with native Windows is a win for Windows.
Xbox’s next-gen console isn’t something you can develop in just two years.
Edit: Phil Spencer talked about next generation hardware console on Xbox & Bethesda Showcase 2022, if im not mistaken.
The Xbox issue is actually a software and marketing problem, not a hardware problem. Both living room consoles have been using very similar hardware and prices. The tech itself is fine. Ms failed to follow up on the 360 because the new guy in charge was clueless about gaming: massive focus on the Xbone one being a TV box, preventing games from being borrowed from your friends wich was a big aspect of choosing a console. And Microsoft was greedy with the price wich allowed the PS4 to undercut them. PS4, which was also a very competent TV box, but PlayStation didn't forget what their company is about: It's a gaming console that can also launch Netflix, ESPN etc.... Xbox tried to sell a TV box that could also launch games...if you were online.
On the software side, well, they never quite managed to have a game line-up as strong as the 360, which hosted many classics. Even the first-gen Xbox had interesting titles coming from its ties with Sega.
A modern hardware company has to be a software company as well. Just look at how Sony failed to stand with Apple, even though they had world-renowned expertise in audio, photo, video, gaming, and mobile devices. They never managed to bring everything in a cohesive and user-friendly package, and got beaten twice by the new kid on the block with the iPod and iPhone.
Microsoft's issue is that they can't read the room when it comes to the consumer market. They've been very insightful with the professionals' needs in the clouds, but I don't remember anything that they've purposefully done for the consumer market that ended up being cherished and a constant strategy with strong follow-up. Windows being heavily customizable then, now feels like they couldn't bother with locking it down then, than a real feature of Windows. A happy accident for us that was never part of the plan. MacOS overall design philosophy hasn't changed after two decades. If you knew how to use Os X Cheetah, you won't have too much trouble with Tahoe. Meanwhile, Windows had a lot of brutal cosmetic changes while still having a ton of legacy systems overlapping that will break the OS if they aren't modernized with care. MS has been trying to migrate the settings panel for over a decade.
Also pro tip: this is not WCCFtech. Calling everyone "sony fanboys" for not jumping in like with Phil is just ridiculous.I still maintain that the Xbox 360 was a major fluke pushed by the hype of Halo and the utter disaster that was the PS3 launch. Had the PS3 launched without the backwards compatibility at $399 and if sony had bothered investing more into first party games the first couple years, the 360 would have been a failure along the lines of the original xbox.
Can you point to a single mini PC that has sold remotely close to even the failed series S/X generation?
We've seen "mini PC the size of a console" before, and that business model has repeatedly failed. The PC market just isnt interested in a non upgradeable console box running Windows. Not to any level that is sustainable economically, after all.
Can you really say, with a straight face, that you'd spend $1500 on a series X because it could run Windows?
Actions speak louder than words. Any kind of confusion is on MS and MS alone, and frankly, regardless of what they say, look at what Xbox is at this point. Its a portal to games you can also play elsewhere. Who is going to miss this ever? Microsoft has spent billions to buy publishers and what do they publish? The same shit we always had. For gamers, Microsoft is really not even a player, so yes, doubt is natural. Their track record is utterly crap, one PR fail after another.
So all in all, I generally don’t see any direction with the Xbox team. Seems like they are just taking random steps reacting to market and competition. The Asus Xbox Ally is a good example as well. There is nothing Xbox about it other than the UI that is a lipstick on hog call Windows and the Xbox button.
GamerPass is basically their last Hurrah and what MS wishes is that GP is allowed on Sony and Nintendo boxes, because lets be honest the service will likely to keep getting expensive and major growth is likely over.
Its funny, how they went out of their way to buy up these studios and outside of CoD and Forza H, not much has really BOOM. Its also like they don't don't know what to make anymore and with GP providing a good revenue stream they see no urgency to fix said problem.
The mere fact they have to come out and address this, clearly says they've been getting negative feedback from it.
For me personably, i wouldn't mind them just becoming a 3rd party publishing juggernaut and leave the console space to Sony & Nintendo, but for now the GP numbers likely means we get one more console to see if there's more growth there.