Xbox President Sarah Bond confirmed that Microsoft is actively working on a new generation of gaming consoles, thus dispelling rumors about the company's potential exit from the gaming device market. According to her, the new devices are in the design and prototyping stages. Microsoft's partnership with AMD also remains in effect.

She described the collaboration with ASUS on ROG Xbox Ally as an opportunity to offer gamers another portable device option "in addition to our next-generation hardware." Sarah Bond also didn't rule out the possibility of Microsoft creating its own portable gaming console in the future.
When asked about the high prices of the ROG Xbox Ally and ROG Xbox Ally X ($600 and $1000, respectively), she explained that they are essentially ASUS products, and that they set the prices. The interview can be found on Variety.
Microsoft was working on its own portable gaming console, codenamed "Project Kennan," but work on the project was put on hold to partner with ASUS on a similar project. Sources emphasize that "Project Kennan" wasn't completely canceled, but rather "put on hold." Insiders are confident that Microsoft still plans to release its own portable Xbox console in the future.
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