Sarah Bond Shows Off Where Microsoft Is 'Prototyping For The Next Generation Of Xbox'

There’s been a lot of talk recently about the next generation of Xbox and whether Microsoft might even cancel its next-gen console(s), but a new walkthrough of the hardware labs suggests Team Xbox is hard at work on whatever’s next.

As you can see in the clip below, Xbox’s Sarah Bond takes Good Morning America on a tour of the labs and specifically mentions (at 0:41) how it’s the location for designing, prototyping and testing the next generation of Xbox.

“This is where the team is actually designing, prototyping and testing for the next generation of Xbox. It is stop secret… we very rarely take people in here.”

Sarah Bond and Carl Ledbetter showed Good Morning America around the Xbox hardware labs to promote the Xbox Ally.

“This is where we’re prototyping the next-generation of Xbox.” pic.twitter.com/CxdMOXvuPG

— Jez (@JezCorden) October 15, 2025

Now, if you feel like you’ve heard this kind of story before, that’s because you probably have! Back in April, Phil Spencer did exactly the same thing, taking the folks at the “Today” show on a tour of the labs.

And again, the narrator at the time mentioned how it was “where the next generation of Xbox is being crafted right now”.

So yeah – stuff is happening in this place! What kind of stuff? That’s anyone’s guess, although they’ve already mentioned a next-gen console (or maybe consoles) that’s in the works, and there’s a belief that they’re working on the Xbox Elite Series 3 controller as well. Probably a few surprises too!

Hopefully we find out more ASAP, but clearly they’re still invested in hardware over at Xbox HQ right now.

What are your thoughts on this? Let us know down in the comments section below.

Fraser Gilbert

Fraser is the News Editor at Pure Xbox, where he spends his time reporting on the biggest stories in the world of Xbox and beyond.