"Our next console is well underway": Xbox drops bombshell announcement as it confirms 2026 plans and beyond

The landscape of console gaming is set for change in the coming months, with a number of significant movements by all sides.

Valve is reportedly delaying the launch of its Steam Machine due to RAM and storage shortages, Sony is said to be doing something similar with the PS6, and Nintendo is looking into other weird and wonderful add-ons for its Switch and Switch 2 devices, including a potential second screen to play DS games.

But what about Xbox? Well, that's just announced a change that could have the biggest impact yet.

Sarah Bond, the brand's president has stepped down from her role and will be leaving Microsoft. As has Phil Spencer, the now former Xbox CEO who guided the gaming arm through its most troubled times.

In their place steps Asha Sharma, who has previously lead Microsoft's AI efforts, and Matt Booty, who has been promoted to chief content officer. And why is this significant? Because it highlights a change in strategy – one that could greatly benefit the next Xbox console.

What's happening at Xbox?

Under Spencer and Bond, Xbox became the biggest games publisher in the world. It also leads the way in cloud gaming. However, the Xbox Series X and especially Series S consoles failed to perform as well as rivals. The same was true of the Xbox One.

And it seems the "everything is an Xbox" strategy has not worked. While Xbox Cloud Gaming is available across Smart TVs from the likes of Samsung and LG, mobile and Fire TV Sticks, there's still no cloud gaming specific subscription. You still need Game Pass membership to get it, and that doesn't make sense unless you own an Xbox or gaming PC.

On top of this, the decision to release an under-spec'ed second console alongside its flagship machine proved disastrous. While the Xbox Series S allowed "next-gen" gaming at a budget, developers felt hamstrung when producing Xbox games, having to ensure that they could run on both consoles.

Things started to look up when the ROG Xbox Ally handhelds arrived, but the Xbox Ally X was just too expensive to make an impact on a market dominated by the Steam Deck.

So while Bond and Spencer managed to make major strides in the software stakes – including the purchases of Bethesda and Activision Blizzard – the hardware strategy seems to have been mishandled.

A new future for Xbox

And so, with a new Xbox console on the imminent horizon – it's "well underway", said Bond in her parting letter – it seems sensible to give someone else a shot at launching it. After all, the market conditions couldn't be better timed.

If the PS6 is delayed until as late as 2029 as suggested, and Valve is struggling to release the Steam Machine at the price it originally wanted, Xbox could have a significant headstart if it manages to get its new machine out this year or next.

There are also signs that the new boss wants to go back to basics with the launch: "We will celebrate our roots with a renewed commitment to Xbox starting with console which has shaped who we are," Sharma wrote in her first official blog as CEO.

After all, the last time Xbox ruled the console wars, with the Xbox 360, it launched a whole year ahead of its biggest rival at the time – the PS3. It could have an even bigger advantage this time.

Of course, it'll all depend on how much the Xbox Next (or whatever it turns out to be called) will cost. And whether it manages to fulfil its promise of being a premium, PC-like machine with cross compatibility. But I for one am getting more excited about this forthcoming next generation of gaming by the minute.