After months of speculation about whether Microsoft had quietly abandoned its handheld gaming ambitions, Xbox president Sarah Bond has finally set the record straight – and it’s the kind of statement that gets fans buzzing. Speaking with Variety, Bond confirmed that Xbox is not stepping back from hardware development but is, in fact, fully invested in what’s coming next. “We are 100% looking at making things in the future,” she said, emphasizing that next-generation Xbox hardware is already in development and that Microsoft is working closely with AMD to power whatever comes next.
This commitment goes beyond just traditional consoles. Bond hinted that the future of Xbox could include new form factors and experiences, shaped by what gamers and creators are asking for. 
“We’re prototyping, designing – innovating,” she explained. “When players demand new ways to play, we build them.”
Her comments arrive at a crucial moment for the gaming landscape. The launch of the ASUS ROG Xbox Ally X – a sleek and powerful handheld PC – has reignited excitement around portable gaming, particularly among Xbox fans who dream of taking Game Pass and their full Xbox libraries on the go. While the Ally X received a solid 7.5/10 from Wccftech, with praise for its performance and improved hardware, reviewer David Carcasole noted its steep price and limited Xbox game compatibility as drawbacks. “It’s the best PC handheld on the market right now,” he wrote, “but it still doesn’t deliver the truly console-like experience many hoped for.”
Bond appears aware of that exact criticism. She revealed that Microsoft is already working to improve the Windows handheld ecosystem, including optimizing software, expanding compatibility programs, and making the experience smoother and more unified across devices. “There’s so much more innovation to come,” she said, pointing to better integration, expanded benefits for users, and – most importantly – more choices for gamers.
While Xbox fans wait for official announcements, one thing is now certain: the company isn’t done experimenting. Whether that means a fully branded Xbox handheld, a new hybrid console, or something entirely unexpected, the next era of Xbox seems focused on flexibility and giving players new ways to connect. If Bond’s words are anything to go by, the future of Xbox might be more portable, personal, and ambitious than ever.