Everything You Need to Know About the Console and Crypto Plans

It’s been over four years since the release of the Xbox Series X and Xbox Series S, a pair of game consoles that offer different performance and price options for players. But Microsoft is already thinking about the next big thing in Xbox land.

Unsurprisingly, a next-generation Xbox is already in development, But what is surprising is that we’ve already heard official details on how Microsoft plans to position it, thanks to documents that were accidentally shared publicly in the FTC’s case against Microsoft’s acquisition of Activision. And there could be a crypto wallet in the mix.

Furthermore, Microsoft is starting to comment publicly about what it plans to do with its upcoming hardware, promising a massive leap in performance for the next-generation Xbox.

Granted, things may change in the coming months and years, but if you’re looking for the latest leaks and reports about the next Xbox console, it turns out Microsoft itself was the best possible source. Here’s what we know so far, and be sure to stay tuned for future updates.

What is the Next-Gen Xbox?

The next-gen Xbox will be the fifth generation of Microsoft’s console, following the original Xbox (2001), the Xbox 360 (2006), the Xbox One (2013), and the aforementioned Xbox Series X and Series S (2020) hardware.

While it was reasonable to assume that Microsoft would continue making new hardware in the future, we got our first taste of the tech giant’s plans in September 2023 when it uploaded unredacted documents to a public repository for the FTC case. Microsoft was apparently at fault for the issue, not the court, and Xbox head Phil Spencer tweeted about the fallout.

“We’ve seen the conversation around old emails and documents,” he wrote. “It is hard to see our team’s work shared in this way because so much has changed and there’s so much to be excited about right now, and in the future. We will share the real plans when we are ready.”

When will the Next-Gen Xbox come out?

According to Microsoft’s leaked documents, the next-generation Xbox is targeted to be released during the 2028 calendar year—eight years after the previous console. This marks a longer console cycle than we’ve seen from Microsoft in the past, which has seen seven years between major hardware launches in the last two cycles.

However, more recent reporting suggests that the launch could come sooner than that. In March 2025, Windows Central reported that Microsoft is already pushing ahead with plans to get the Xbox Series X/S follow-up out in 2027. The publication says that Microsoft CEO Satya Nadella has signed off on the plan, and adds that it includes at least a premium successor to the Xbox Series X, a dedicated gaming handheld, and new controllers.

No pricing estimate was leaked in the documents or since reported by reputable sources. However, it sounds from the Windows Central report like Microsoft may not focus on having a less expensive, less powerful home console option this time around.

How powerful will the Next-Gen Xbox be?

It’s too early to tell how significant of a power bump we’ll see from the new Xbox compared to the Xbox Series X, but what is interesting is how Microsoft is approaching the device.

According to its leaked documents, Microsoft sees a model in which games run with both local and cloud computing power in a hybrid model. We’ve seen hints of this before, particularly with the latest Microsoft Flight Simulator game, which pumps in cloud-powered real-time weather while the game otherwise runs on your local PC or Xbox hardware.

Image: Microsoft.

But a few years from now, Microsoft appears to think that it can pull this off on a larger scale, pairing home hardware with a boost from remote servers as a more standardized hybrid model across Xbox games.

“Our vision: develop a next-generation hybrid game platform capable of leveraging the combined power of the client and cloud to deliver deeper immersion and entirely new classes of game experiences,” the Microsoft documents read. “Optimized for real-time gameplay and creators, we will enable new levels of performance beyond the capabilities of the client hardware alone.”

The documents suggest that Microsoft needed to make some key hardware decisions by the first quarter of 2023, including the CPU makeup and how it will either co-design or license an AMD GPU. Where the company landed on those choices remains unclear.

Ultimately, Microsoft wants a device that can handle “next-gen DirectX ray tracing” for realistic lighting effects, plus “dynamic global illumination,” “micropolygon rendering optimizations,” and “machine learning-based super resolution.”

Image: Microsoft

In other words, yes, the next-gen Xbox will surely be more powerful, although Microsoft may still be weighing the details. Or they haven’t all leaked just yet. Furthermore, the documents spell out a number of timelines for hardware, games, and software, suggesting a detailed roadmap for the various pieces that make up the Xbox experience.

In February 2024, Microsoft made its first public statements about how powerful the next-generation Xbox will be. In an official podcast episode used to announce that Microsoft will start releasing some exclusive Xbox games on Nintendo and PlayStation hardware as well, Xbox President Sara Bond planted a flag in the ground for the next console.

“We’re also invested in the next-generation roadmap,” Bond said, according to Eurogamer. “What we’re really focused on there is delivering the largest technical leap that you will have ever seen in a hardware generation.”

At the Xbox Games Showcase in June 2024, Bond also affirmed that Microsoft is working on the “next generation” of Xbox.

Will crypto be involved?

Based on the leaked roadmap, which is dated May 2022—yes, there actually is a crypto wallet planned for Microsoft’s next console ecosystem. A slide that was unintentionally published by Microsoft as part of the FTC case mentions “crypto wallet” as part of the commerce stack. Axios first reported the crypto wallet plans.

Image: Microsoft/FTC.

It’s also labeled as something that Microsoft will create itself, rather than plug in a third-party or existing feature, although it’s still unclear whether Microsoft will develop a full wallet itself or simply create an integration that lets users plug in existing wallets (like MetaMask).

That’s all we know right now, and Microsoft declined to comment and simply pointed to Phil Spencer’s aforementioned tweet. It’s worth noting that the presentation was made about a week before the crypto market crashed in May 2022 due to the Terra collapse, so it’s unclear whether Microsoft may have reevaluated its plans amid the ongoing bear market.

What games will the Next-Gen Xbox have?

It’s too early to tell at this point. However, Microsoft has consistently put an emphasis on game compatibility across generations with recent console cycles, matching a PC-like philosophy of being able to play your existing games even after you buy new hardware.

Microsoft has also emphasized its Xbox Game Pass subscription service in recent years, and the leaked documents similarly point to expectations that Microsoft will be able to grow its subscription base in the years to come. Part of that will come via the launch of a cloud-driven app for smart TVs, broadening the player base even further.

In any case, it’s quite likely that Microsoft’s own core franchises like Halo and Forza Motorsport will continue on to new hardware, along with IP owned by its studios like Bethesda (including The Elder Scrolls and Doom) and Activision (Call of Duty, Crash Bandicoot). Windows Central also reported that the next Xbox will be easier to bring PC games to, and that it could feature third-party game storefronts.

What’s the Xbox Ally?

There’s new Xbox-branded hardware coming before the next-gen Xbox: the Xbox Ally, a gaming handheld announced on June 8, 2025. Built in collaboration between Asus and Microsoft, the Xbox Ally and more powerful Xbox Ally X are Windows PC handhelds that can also play Xbox games that are native or cloud-streaming.

Both models feature the same core design, with a 7-inch IPS LCD 1080p display and an AMD Ryzen Z2 processor, though the Ally X has a faster CPU, more RAM (24GB vs. 16GB), double the internal storage (1TB vs. 512GB), and “impulse triggers” with force feedback. It also has a larger battery and weighs a little more.

It’s a Steam Deck rival, more or less, and the first proper Xbox-branded handheld after years and years of rumors—though it’s still ultimately a PC that can play Xbox platform games on Windows, not a portable Xbox console. But that distinction is increasingly becoming less and less important as Microsoft releases most games across the platforms.

The Xbox Ally devices are due out this holiday season, though no price or exact date has been announced.

Editor’s note: This article was first published on September 26, 2023 and last updated with new information on June 10, 2025.