The takeaway: Xbox President Sarah Bond has confirmed that Microsoft is actively developing next-generation Xbox consoles, putting to rest rumors that the company might exit the market. Bond also addressed the high pricing of the new Xbox Ally handhelds and revealed that Microsoft is seriously considering producing its own gaming handhelds in the future.
In an interview with Variety, Bond categorically denied rumors that Microsoft is exiting the console market. She told the publication that "our next-gen hardware (is) in development," noting that the devices are currently in the design and prototyping stages.
Bond reassured Xbox gamers that Microsoft's partnership with AMD remains active and described the company's collaboration with Asus on the Xbox Ally devices as an opportunity to offer gamers another handheld option "in addition to our next-gen hardware."
When asked about the high pricing of the Xbox Ally and Xbox Ally X – which retail for $600 and $1,000, respectively – Bond explained that they are essentially Asus products, with pricing determined by the Taiwanese firm. She did not elaborate further, though industry sources cited by Windows Central suggest that elevated tariffs on Chinese imports contributed significantly to the higher costs.
The interview comes just days after Microsoft initially denied rumors that it was exiting the console market. In a press release, the company clarified that it is "actively investing in our future first-party consoles and devices designed, engineered and built by Xbox."
Bond's statement should reassure Xbox fans who were concerned following the cancellation rumors, especially as the company has already shelved the cloud-based Keystone console and a first-party Xbox handheld over the past year.
Microsoft's gaming division has faced criticism recently for several reasons, including the decision to raise the Xbox Game Pass Ultimate subscription by 50 percent, from $19.99 to $29.99 per month. Following the price hike, gamers have reportedly been canceling their subscriptions in record numbers, raising fears of a potential mass exodus from Xbox that could impact Microsoft's bottom line.
The ROG Xbox Ally handhelds were released last week to generally favorable reviews, praised for their strong performance, improved battery life, excellent ergonomics, and a more intuitive user interface compared to other handheld gaming PCs. However, they were criticized for their high price tags and the lack of basic features such as an OLED display, touchpads, and Hall effect joysticks.