The next generation of Xbox consoles reportedly could include both a console and a handheld.

Windows Central sources allege that Microsoft is now working on a traditional console that would follow-up the Xbox Series X and compete with the inevitable PS6, while at the same time developing the long-rumored Xbox handheld said to be the company's "own take on the Steam Deck."

Rumors have been floated before about an Xbox portable console, but evidence is building that Microsoft may debut a Switch and Steam Deck competitor.

On the back of a recent interview discussing Xbox's upcoming anniversary plans, outlet Windows Central believes that Microsoft will kick off the next generation with "at least" an Xbox Series X follow-up and a Steam Deck-like handheld console.