Project Magnus: The Hybrid Future of Xbox & Handhelds Revealed

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By Hardware
10 February 2026 no comments
New rumors seems to indicate Xbox is working on multiple devices for the next gen console!

Remember the buzz from the Xbox Games Showcase 2025? When Microsoft brought ASUS on stage to reveal the ROG Xbox Ally, it felt like a shift. It wasn’t just a licensed sticker on a PC; it was a statement. But if you thought that was a one-off experiment, think again.

New reports suggest that was just the appetizer. We’re looking at a completely different future for Xbox—one where the “console” isn’t just a plastic box under your TV, but a family of devices built to play anything, anywhere.


Beyond the Box: The OEM Revolution

We’re used to the standard console cycle: Sony or Microsoft releases one box, maybe a “Pro” version later, and that’s it. Microsoft is tearing up that rulebook. According to fresh details from Windows Central’s Jez Corden, the partnership with ASUS for the ROG Xbox Ally is the blueprint for the next generation.

Think of it like the Windows laptop market or Android phones. Microsoft wants to build the core OS and the “reference” experience. However, they’re opening the doors for partners like ASUS (and likely others like MSI or Dell) to build their own hardware variations.

This means we could see a budget-friendly 1080p machine from one brand and an ultra-premium, liquid-cooled monster from another. The goal? To flood the market with options at every price point, all running the next-gen Xbox ecosystem.


Project Magnus: The Hybrid Heart

The hardware is only as good as the silicon running it. The leak points to an AMD System-on-Chip (SoC) internally codenamed “Magnus.”

This isn’t just about raw teraflops; it’s about architecture. The vision is a true Xbox-PC hybrid. We’re talking about a machine running a specialized, controller-friendly version of Windows 11 that eliminates restrictive barriers.

  • The Stores: You want to play your Steam library? Go ahead. Epic Games Store? Sure.
  • The Legacy: Full backward compatibility with Series X|S and older Xbox titles.
  • The OS: A fluid interface that feels like a console but acts like a PC.

This lines up with recent comments from AMD’s CEO about next-gen hardware progress.

If “Magnus” delivers, it solves the biggest headache of PC handhelds: the clunky Windows desktop experience on a small screen.

Also learn more about the AMD and Xbox Partnership for the Next Generation!


The First-Party Handheld is Still Alive

Here’s the part that had the community worried: did outsourcing to ASUS mean Microsoft gave up on making their own handheld? Good news—apparently not. Despite the flood of third-party partnerships, sources say Microsoft still plans to engineer an internal Xbox handheld.

The main idea is a “Surface” of gaming. This device would set the standard—the baseline experience that developers target. While the traditional home console remains the priority for the 2027 timeline, this first-party portable would likely serve as the “purest” way to play, while partners offer niche alternatives.


2027: The Realistic Timeline

If you’re reaching for your wallet, hold up. While the leaks are exciting, this isn’t happening tomorrow. The “best case” scenario for this new hardware generation is 2027.

The timeline depends heavily on software. Integrating Windows 11 seamlessly into a console experience takes time. Microsoft and the Windows team are reportedly working closer than ever to ensure this isn’t just a reskinned desktop but a legitimate console interface.

They’re prioritizing quality over rushing to market, which—considering the shaky launch of some recent tech—is the right call.


The Future is Modular

This strategy represents a massive pivot from the closed garden approach of the last twenty years.

By blurring the lines between PC and Console, Microsoft is acknowledging that gamers don’t care about the plastic box; they care about their library. If they pull this off, you won’t be locked into a single piece of hardware for seven years.

It’s risky, complex, and relies heavily on Windows not crashing—but it’s the most ambitious roadmap we’ve seen in a decade.

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A video game enthusiast ever since I first got my hands on a Game Boy. Over the years, I've played many different games across various genres, discovering hidden gems and niche titles along the way. I'm also passionate about technology, always up-to-date with the latest news and insight in the PC and Console market. Ready to share and bring you the latest news !

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