Phil Spencer insists next Xbox console will be first party hardware, unlike ROG Xbox Ally handheld

Xbox President Sarah Bond recently described future hardware as "very premium" and "very high-end". Still, there is confusion about whether the system will resemble the Xbox Series X|S or an OEM device. In a Famitsu interview, Microsoft Gaming CEO Phil Spencer drew a distinction between the next Xbox console and the ROG Xbox Ally handheld.

At the Tokyo Game Show, Spencer discussed efforts to expand Xbox's presence in Japan. As reported by Genki on social media, the subject of the next hardware generation also came up. Spencer noted that the ROG Xbox Ally is an "Asus product". He then said, "I think the hardware that we, Microsoft, announce as a first-party company will be the next console". The CEO wouldn't commit to a release date for the system.

Despite contrasts with the gaming handheld, he also sees the next-gen Xbox console following a similar direction. According to Spencer, the "Xbox software platform will evolve, connecting console, PC, and cloud into one ecosystem". The ROG Xbox Ally and Xbox Ally X run on Windows 11, which means they're compatible with Game Pass and marketplaces like Steam. On the other hand, there wouldn’t be exclusive games to tempt buyers to purchase the console over competitors.

How the new Xbox console is evolving

Rumors suggest that Microsoft and AMD are developing a gaming system based on the Magnus APU. Yet, leakers like Moore's Law is Dead claim that AMD engineers are taking on most of the burden. Critics expect the new Xbox console to be a gaming PC with Xbox branding. It may also be considerably more expensive than the Series X and the PS6.

Spencer tried to alleviate fears that Microsoft is exiting the hardware market. Nevertheless, if the next AMD-designed Xbox console takes the form of a Windows PC and lacks exclusives, it may stretch the definition of a first-party system.