Microsoft Is Secretly Working On An XBox Gaming Handheld Which Will Be A Direct Competitor To Nintendo Switch

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Rumors about the next-generation Xbox console have been circulating widely. In the past year, two insiders have claimed that Microsoft plans to release its new console in late 2026. This move would precede the launch of Sony’s PlayStation 6, echoing the successful early release strategy of the Xbox 360.

Microsoft is said to be working on an Xbox handheld device. Although several prototypes are in progress, a release is not expected soon. This has led some Xbox fans to speculate that the next console might be a hybrid, similar to the Nintendo Switch (and possibly the upcoming Switch 2).

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In the latest Xbox Two podcast, Jez Corden from Windows Central clarified that the next Xbox will be a traditional home console, not a hybrid. The handheld device will be an add-on. Corden also speculated that Microsoft might remove the paywall for multiplayer gaming, but only for the new Xbox, offering an extra incentive to upgrade from the Series S|X.

This is good news, as a hybrid console would likely have performance drawbacks compared to a dedicated home console. Additionally, Xbox president Sarah Bond confidently stated that the next Xbox will represent the biggest generational leap ever. To achieve this, even with the diminishing performance improvements of new chipsets, they might incorporate a neural processing unit (NPU) to manage advanced AI tasks.

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