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."

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

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.

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

Nintendo Switch has, without question, been at the front of the pack in the handheld gaming race, but a recent Xbox leak could spell the end of the company's winning streak.