Xbox announces partnership with AMD for "next generation Xbox consoles"

[Kyuu]

I doubt they're making traditional Xbox consoles. They'll probably have a range of Xbox branded PC's that will include handhelds, mini PC's, and fatter PC's.

I suspect their deal with Asus is temporary. They will eventually produce their own SteamDeck with Microsoft's storefront, partial backwards compatibility, GamePass, and other perks preloaded. It will also support Steam but they will prioritize advertising their own things.