From the horse's mouth:
Microsoft is working on next gen Xbox console(s)
The announcement of the ROG Xbox Allys and Xbox’s partnership with Asus also sparked some confusion over whether Xbox was out of the in-house-made console game. Bond confirms the Xbox team is still hard at work on its next-gen consoles, the follow-ups to the Xbox Series S and X, and there’s even the possibility of internally made handhelds.
“We are 100% looking at making things in the future,” Bond said. “We have our next-gen hardware in development. We’ve been looking at prototyping, designing. We have a partnership we’ve announced with AMD around it, so that is coming. What we saw here was an opportunity to innovate in a new way and to bring gamers another choice, in addition to our next-gen hardware. We are always listening to what players and creators want. When there is demand for innovation, we’re going to build it.”
Xbox president Sarah Bond discusses the release of Xbox's Ally handheld device, including the price set by Asus, and progress on next-gen consoles.
variety.com
Via
https://thegamepost.com/microsoft-next-gen-xbox-console-development/