Microsoft may launch next-gen Xbox and a handheld gaming console in 2026

Microsoft may be working on a handheld Xbox gaming console, which will be able to run games natively as well as on the cloud. The company is rumoured to launch the next gen Xbox and the portable console sometime in 2026.

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The next-gen Xbox is said to feature an AMD processor. (Express Photo)

The next generation of Xbox may be available in two form factors. Apart from the standard Xbox, a new rumour suggests that Microsoft is working on a portable Nintendo Switch-like handheld gaming device that will be able to run natively as well as on the cloud.

The news comes from an Xbox community member Magg, who said during the Xbox News Cast podcast that we may see a new version of the Xbox in 2026, but there is a possibility Microsoft might change its plans. While he did not reveal any details about the handheld gaming console, it looks like the SKU will be cheaper than its traditional counterpart.

Another industry insider Jez Corden also claimed that Microsoft has given a green flag for several Xbox hardware, hinting that the tech giant is not yet giving up on the console market. This corroborates with the unintentionally leaked documents by the US Federal Trade Commission, which confirmed that the tech giant was already working on the next generation of Xbox.

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The documents also revealed that the next Xbox will be a hybrid console and that Microsoft is considering two processors, both manufactured by AMD.

Recent rumours also hinted that the Xbox maker is considering quitting the console business and will instead focus on publishing new games for its current rivals like Nintendo Switch and Sony PlayStation. The speculation got so much attention that Xbox head Phil Spencer announced that are “planning a business event for next week” where the company will share more details about the future of Xbox.

Since none of this is official at the moment, we suggest you take this information with a huge grain of salt and wait for Xbox head Phil Spencer to make an official announcement next week.