United Kingdom, Oct. 6 -- Microsoft has confirmed that a new generation of Xbox hardware is in active development.

Rumours began circulating that Microsoft would be pulling out of the console market after reports suggested Microsoft was scaling back its hardware division to focus on cloud services and multi-platform publishing.

The company has now dismissed those claims, saying it is "actively investing in the future of first-party consoles and devices".

A Microsoft spokesperson told Windows Central: "We are actively investing in our future first-party consoles and devices designed, engineered and built by Xbox.

"For more details, the community can revisit our agreement announcement with AMD."

Windows Central reported that the next X...