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PC Gamer
PC Gamer
Ted Litchfield

Despite declining sales and the latest 'Xbox' being a handheld PC, Microsoft says it's still making a next-gen console: 'We are actively investing in our future first-party consoles and devices'

An ROG Xbox Ally X and Ally shown during Microsoft's Xbox stream in June 2025.

As reported by Windows Central, Microsoft has stated it has no plans to exit the hardware market, despite poor sales of the Series X and S. There have been rumors that it would eschew traditional home consoles in favor of cloud gaming and more PC-like hardware, such as the imminent Xbox ROG Allies.

"We are actively investing in our future first-party consoles and devices designed, engineered and built by Xbox," The company said in a statement to Windows Central on October 5. "For more details, the community can revisit our agreement announcement with AMD."

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