I think we will get more xbox hardware, (at the very least more xbox branded OEM devices), but likely xbox manufactured devices too, though it's going to be very different. They're not going to be releasing devices that can sell even 10m. They'll be more niche and sold at a profit. They won't really have "generations" anymore, even if they market it as such and call it their next generation device at the beginning (which they will). They're going to be releasing essentially compact PC's with a console friendly interface, and they sure as hell aren't going to be devices that last 6-7 years. When it comes to the traditional console business model, they're done.

PlayStation hardware will dominate them on price to performance, Xbox hardware will just be a niche option for people that want an easy entry point to open platform pc gaming.

If 10 million for the handheld wasn't enough, then what does that say about a next gen Series X type model? A next gen Series S type model, sure, that could sell well over 10M.

Now if MS is just going to go more so the "Steam Machine" route, using everyday off the shelf parts, then they could still make a bunch of different models and it would make some business sense. Even a handheld possibly.

Depends on how custom, "to the metal", MS wants to get with next gen XB hardware, as well as how much they want to profit from it.

I think they are preparing for the streaming future - which, as nVidia demonstrated with current GeForce Now, finally actually works and will keep getting better.

That said, if they go with hardware approach, I think their best bet to differentiate themselves and offer something that no one's offering is what I proposed already (albeit for PS6) - a Multi-User hardware that is able to partition itself into several instances that can be streamed to other devices in house via Ethernet or, now that there's finally good WiFi, WiFi7 - practically, in-house/offline streaming service machine.

Yes, it would be more expensive than standard run of the mill console, but not by a crazy amount, especially if they go with 2 tiers of hardware again - one cheaper (think S, but as actual half of its X, not gimped S of this generation) that is able to run only up to 2 instances (either 2x 1g or 1x 2g, to use nVidia's profile scheme), and one pricier (X) that can run up to 4 instances (1x 4g, 2x 2g, 1x 2g + 2x 1g, 4x 1g).

This would make something that is pretty unique and not available anywhere else, even on PCs, and I think that MS is, due to their know-how, most suited to launch something like this in the future.

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.

Again.. "admit". This shows your mindset regarding all of this and how you think it is some imaginary war over internet forums. I did not "admit" anything; I have been saying/stating/claiming for a long time that the next Xbox is, hopefully, going to be more than just able to play Xbox games. You see all of this as bad things for the Xbox brand; I do not. You are so deep in that console war that you could not even understand that. 
"Move over to PC"... See, EVERYTHING you say is about the plastic box, and you cannot see beyond your console. Xbox is a brand, not a plastic box (it was a plastic box at first). And they are evolving (they have no choice, because they would be irrelevant without doing so) into something different, as simple as that.

I'm done arguing with you and your very narrow vision of what should be a success in the video game industry and what you call a "collapse". (23 billion in revenue, latest Q 10% increase Y2Y) is a collapse for some reason in your head...  

If these leaks are accurate then yeah it looks like we're getting a very expensive PC box catering to enthusiasts rather than a mass market product.

https://www.purexbox.com/news/2025/10/xbox-magnus-leak-suggests-next-console-will-be-powerful-expensive-and-maybe-a-hybrid-device

In this economy, such a device will be a tough sell. They probably figure that only their most diehard followers will stick with them, so they may as well get as much money from this small pool as possible.

With both this and the next Playstation now strongly rumoured for 2027, it's looking like the next generation indeed coming up fast, which feels weird as it seems like PS5/Xbox Series only just came out due to the extended crossgen period.

MLID is saying there is a massive difference in size between the 2 leaked rumored chips.
Xbox is once again going for the power crown, and this time making a chip more than 46% larger than PlayStation's. 

Imagine if PS6 is like 600-700$ and the xbox console is like 900-1200$ (MLID hints at that range).
There will be memes like "I can get 2 PS6's for the price of 1 xbox".

Xbox is really doubling down on that performance crown.
Also interesting to see if the dual boot or hybrid pc with multiple storefronts thing is real.

Like legit that could be a selling point.
This isn't just a gaming console its also a real pc, with windows, that you can use for other stuff than just gaming.
That might be how they sell this.

If its marketed as a real pc, that can do anything a pc can....
Its not really expensive.

How much do pre-build PCs with these performance levels costs if you buy them?
Its probably not unreasonable to ask for like 900-1200$, alot of PC's can easily cost you that or more.

The thing is to not market it as a game console.... you need to repeatly point out, that it's not just a game console again and again.

Instead of TV,TV,TV,Sports,TV....

It will be "plays a game", "word" ,"excel" ,"remote work" ,"school work" ,"browse the internet with comfort", "Plays a game again" ect.

Otherwise the value aspect falls apart.

*edit:

Supposedly this could be like 5080 level of GPU performance.  Those card on a PC side, aren't cheap.
Honestly it could easily be over 1000$ and still be a good buy if these specs are real.

5080 in raster. Much more in RT. Which is really not that crazy when you think of it, if RDNA5 is as good as it's rumoured to be, and apparently it is.