Next-Gen Xbox Will Feature Native Backward Compatibility, According to Industry Sources

Amid growing concerns about the future direction of Xbox hardware, reliable sources have stepped in to reassure gamers that backward compatibility will remain a cornerstone of Microsoft's next-generation console strategy. According to Windows Central’s Jez Corden, the upcoming Xbox console will support prior generations of games at the hardware level, eliminating the need for software-based emulation and reinforcing the company's long-standing dedication to preserving its game library.

The concern was sparked following the Xbox Games Showcase 2025, where Microsoft revealed the ASUS ROG Xbox Ally, a handheld gaming device that stirred speculation about a PC-centric future for the Xbox brand. The narrative escalated after The Verge’s Tom Warren reported that Microsoft may allow OEMs like ASUS to manufacture their own Xbox-branded hardware, potentially blurring the lines between console and PC.

To address these fears, Corden spoke on the Xbox Two Podcast and provided a clear and confident statement:

“I can pretty much confirm—the next Xbox is like 100% or 99.999% recurring running your console games... the next Xbox has the silicon for running Xbox One and Series X and 360 games natively. At least what's in the backwards compatibility program.”

Corden went on to clarify that all digital purchases made for Xbox One, Series X, and Series S will be supported on the new system, reinforcing Microsoft’s ecosystem-centric approach. This backs up Microsoft’s long-standing commitment to ensuring that gamers retain access to their existing libraries—a pillar of its gamer-focused philosophy since the Xbox One X generation.

Still, the prospect of third-party Xbox devices remains valid. Tom Warren's earlier reporting suggested that Microsoft might open the Xbox platform to licensed manufacturers. Corden acknowledged the credibility of this possibility:

“I would not be surprised if there is an ASUS ROG gaming all-in-one that also is just a PC, like Tom said... the more I looked into it, I was like, ‘Oh [BEEP] yeah, he's right.’ So, shout out to Tom for that.”

Despite the speculation, Microsoft is still reportedly working on its own flagship Xbox console, expected to be released within the next couple of years. The tech giant previously promised the “largest technological leap” in Xbox hardware to date—a bold statement that raises expectations for both performance and feature integration.

Backward compatibility has been one of the most consistently praised Xbox features over the past decade, helping Microsoft earn goodwill from players and industry veterans alike. The confirmation that this feature will be built directly into the next-generation hardware, not added later through software, will likely ease fan concerns and solidify trust in the Xbox ecosystem going forward.

What are your thoughts on Microsoft’s approach to backward compatibility? Would you prefer a dedicated Xbox console or welcome OEM variants like the ASUS ROG Ally? Join the conversation below.