The upcoming generation of Xbox consoles is rumored to feature both a traditional console and a handheld device. According to Windows Central, Microsoft is adopting a dual strategy similar to its approach with the Series X and S. The plan reportedly includes a successor to the Series X in a traditional form, along with a handheld gaming option akin to the Steam Deck. While the specifics of this strategy remain uncertain, if the handheld resembles the Steam Deck, players may be able to play their digital purchases seamlessly between the handheld and console, without a separate ecosystem like the 3DS and Wii U or Vita and PS3. There's also speculation that it could integrate the console and handheld components, much like the Switch.

Separately, Microsoft has confirmed plans to commemorate the 25th anniversaries of both Xbox and Halo in 2026. This current console generation has been unusual, with developers still supporting last-gen consoles, and the backlash against the PS5 Pro's price has disrupted the traditional console cycle. Last year, leaked documents suggested an Xbox mid-gen refresh for October 2024, though Microsoft stated the plans were outdated. However, the company is still set to release a digital-only Xbox Series X.