In recent weeks, Microsoft and Xbox have faced a turbulent period, marked by criticism following summer layoffs and a significant increase in the price of Xbox Game Pass Ultimate. This climate has shaken fan confidence, fueling rumors of an alleged abandonment of the hardware market.

To put these speculations to rest, Xbox President Sarah Bond spoke in a new interview with Variety, strongly reiterating the company's commitment to the hardware sector:

We are 100% focused on making future products. We have our next-generation hardware in development. We are taking care of prototyping and design. We've announced a partnership with AMD on this, so the product is on the way. What we saw here [con ASUS ROG Xbox Ally] was an opportunity to innovate in a new way and give players another choice, in addition to our next-gen hardware. We're always listening to what players and creators want. When there is a demand for innovation, we make it happen.

Bond then confirmed in no uncertain terms that Microsoft is not only still committed to making new Xbox hardware, but that the next generation is already at an advanced stage.

The interview also touched on the topic of portable devices, a topic made topical by the recent release of Xbox Ally in partnership with ASUS. Bond specified that, although it features the Xbox brand, the Ally is in all respects a handheld PC produced and priced by ASUS, and not an Xbox first party console that Microsoft can subsidize to lower its price. The partnership served to innovate faster and "bring players another choice".

Regarding the possibility of Microsoft making its own first-party handheld console, Bond left the door open. Sources had previously indicated that an internal project had been "paused" in favor of collaboration with ASUS. The Xbox President emphasized that the opportunity with ASUS was seen as an innovation in addition to next-gen hardware.

Despite the skepticism of some, due to Microsoft's past history in discontinuing some consumer products, the huge billionaire investments in Xbox, between acquisitions and cloud infrastructure and especially in the partnership with AMD, suggest a solid commitment to the Xbox ecosystem in general, and the official confirmation of new hardware in active development helps clarify the company's future strategy, although many questions still remain unanswered.