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Rumor: Xbox Handheld Not Cancelled, Next Xbox Console To Be Revealed In 2026

June 16, 2025 by Ryan Parreno

This rumor just completely contradicts everyone else.

We have some interesting rumors about Microsoft’s future that seems to cast doubt on everything we just thought was already confirmed to be as good as true.

According to extas1s, Kepler_L2 has been making claims across various social networks and forums about Xbox’s future that just run counter to other rumors that have spread online. In fact, Kepler_L2’s rumors are contradicting those extas1s got from his own sources. The fact that extas1s is also sharing these rumors is an indication of how much weight he places on Kepler_L2’s word.

First things first, in opposition to Tom Warren’s claim, Kepler_L2 says that the Xbox portable is one to two years away from Sony’s portable. Yes, if Kepler_L2’s sources are to be believed, not only is Microsoft busy working on that official Xbox gaming handheld, they’re close to release as well. If Kepler_L2’s source is true, it does make sense that Microsoft is partnering with OEMs for devices like the ROG Xbox Ally first. As I pointed out, Microsoft has a unique advantage compared to Nintendo, Sony, or Valve, because they muddle in both hardware and software.

As Microsoft has deftly proven, it is possible to lead the industry to the direction they want, by simultaneously competing and working with their OEM partners. They created the market for Windows tablets and convertibles, even as tech reviewers dismissed their Surface devices year after year. One could even argue the imperfect nature of those devices, that couldn’t match Apple’s devices category for category, but proved to be a better choice in specific consumer use cases, was part of the plan.

 Microsoft can absolutely afford to make even more portable gaming handhelds with other OEMs, as they slowly figure out how to make the Windows OS a suitable portable gaming platform.

Kepler_L2’s other claim seems to be partly speculation, but that is somewhat inherent to the nature of these rumors, and even some leaks. Kepler_L2 believes Microsoft will show the next Xbox as soon as next year. For those who don’t remember, this is a repetition of a claim he made all the way back in 2023.

Kepler_L2 also says, contradicting other rumors, that these 10th generation Xbox will not be a hybrid PC console, and still be a games console as we know it. This means it will have an operating system for a console, made for a controller. Kepler_L2 does believe that it would be far more complicated to make an emulator, translation layer, virtual machine, or some other solution to make original Xbox games, from across the generations, playable on PC, than it would be to just make another generation of Xbox that can run said games.

If there’s any reason to believe Kepler_L2 on this, it would simply be because the rumors he does share center around his data collection about chips, such as CPUS, GPUs, SOCs, etc. He probably knows firsthand that the AMD chip Microsoft chose for the next Xbox would not be suitable to make a general purpose Windows PC/Xbox.

And if you think about it, this goes back to the point of having a games console. Because it has been true for so long that most games can be made to run better on PC, with the caveat that it could cost you an arm and a leg to get a gaming PC like that. Games consoles exist because they’re an easier way to game; the platform holder worries about things like compatibilities, optimization, etc. Most importantly, they price the platform so that it’s easier to get in, and then they make money from selling you the games themselves.

The notion of a PC/console hybrid would have to contend with the knowledge that the technology required for it would be prohibitively expensive. Either Microsoft scales back the ambition of such a device, or it doubles or even possibly triples the cost of Xbox consoles right now.

With all that said, we never really know which rumor and source will turn out to be true until it becomes official. It would certainly be interesting if Microsoft just surprises everyone with a 10th generation Xbox reveal so close to the launch of the Switch 2, and also close to or at the launch of Grand Theft Auto 6.

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