Let’s forget about the mudslinging that occurs when anyone brings up the two big console makers who don’t have a big “N” in their name. Instead, let’s ask a simple question: what do we actually want from a next-gen Xbox or PlayStation? The latest rumors suggest 2026 could be a big year for Microsoft and Sony, as both may pump out new consoles with PC-level graphics capabilities and handheld gaming platforms to compete with the Steam Deck and Switch 2. The only caveat that’s going to deflate our rising enthusiasm is the inevitable sticker shock of significantly more powerful consoles.

First, let’s look at what we know, what we don’t know, and what’s churned out from the ever-grinding rumor mill. Sony has yet to provide a hint of a next-gen PlayStation device, though Microsoft has effectively confirmed there’s a new Xbox console coming. Sony won’t be far behind. Reliable rumors from sites like Windows Central have mentioned that Microsoft was working on its own Steam Deck-like handheld device, but that’s been pushed to 2026. In the meantime, our first taste of Xbox-branded hardware will come with the aid of Asus in the form of the ROG Xbox Ally and Xbox Ally X. Sony’s only official nod to handhelds was it adding game streaming to its perfunctory PlayStation Portal.

Xbox may be rushing out a whole new console for 2026, according to normally reliable leaker “Moore’s Law is Dead” on YouTube. The new console is reportedly codenamed “Magnus,” and it will use AMD’s latest Zen 6 CPU microarchitecture alongside new RDNA 5 graphics capabilities. Without actual specs, we can’t say just how good it will be, but “Moore’s Law is Dead” suggested Xbox is aiming for twice the graphics performance of the PlayStation 5 Pro. It could have ray tracing capabilities, which offer more realistic lighting in games, and a stated graphics performance of up to 120 fps at 4K resolution.

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The leaker mentioned the next-gen Xbox GPU could have 68 compute units, the core clusters that normally define how capable an AMD processor is. With supposed specs stating the chip will be a 3nm processor with a 192-bit GDDR7 memory bus, it could be a fast and efficient chip for console gaming. “Moore’s Law is Dead” mentioned it could offer performance on par with an Nvidia GeForce RTX 5080, but we seriously doubt users can expect performance equal to a PC with those stated specs. What will give it a serious leg up is AMD’s FSR 4 upscaling. Compared to earlier versions of AMD FidelityFX Super Resolution, the latest version is a proprietary technology for AMD chips that takes a frame at a lower resolution and massages it to look higher resolution—offering better performance.

PlayStation’s lead architect, Mark Cerny, has said Sony plans to bring FSR 4 to the PlayStation 5 Pro. That PS5 with the upgraded GPU could simply be a stopgap for what’s coming. Multiple reports have stated PlayStation is crafting a handheld alongside a PlayStation 6, which rumormongers have dubbed “Project Orion.” Previous rumors suggested that the PS6 is functionally complete, though whether it will come in 2026 or 2027 is still up in the air. We don’t yet know if the PlayStation is working with AMD on similar chip microarchitecture for its console, but the handheld may be able to play PS5 games at lower power. Last week, Sony rolled out a console update that enabled a power savings mode. This change has leakers crowing that this will be the same technique used for a handheld to run at a lower resolution and save on battery.

Imagine if the next-gen PlayStation and Xbox offered a PC-like experience without the obtuse cost of a modern gaming PC. Xbox President Sarah Bond has already suggested Microsoft’s gaming arm is crafting something that will feel more like a PC. Sony will still be more constrained considering its love for its exclusive ecosystem, but even that’s slowly changing. Sony has pushed most of its high-profile games to PC. A job listing for PlayStation suggests Sony wants to bring its games to Xbox and Nintendo consoles. The end result is more games will be available to both platforms.

Even if these devices are cheaper than third-party PCs, they likely won’t be cheap. Already, the Xbox Series X and PS5 are pushing the bounds of what players are willing to pay at $500 each. The $700 PS5 Pro initially sold well, but sales reportedly lagged behind the PS4 Pro in the beginning of the year, according to industry analyst Mat Piscatella. How much are players really willing to pay? If the 2026 consoles cost even more, they’ll make the $450 Switch 2 seem like a bargain. Nintendo’s sequel Switch has become the fastest-selling console ever in U.S. history, according to data from Piscatella’s analyst firm Circana.

At the very least, next year’s hardware releases will be far from boring.