Rumors have been floated before about an Xbox portable console, but evidence is building that Microsoft may debut a Switch and Steam Deck competitor.

Windows Central sources allege that Microsoft is now working on a traditional console that would follow-up the Xbox Series X and compete with the inevitable PS6, while at the same time developing the long-rumored Xbox handheld said to be the company's "own take on the Steam Deck."

The next generation of Xbox consoles reportedly could include both a console and a handheld.

Microsoft has forced 'challenging' revenue and profit goals on Xbox, as the company prepares for a Tokyo Game Show presentation.

Nintendo Switch has, without question, been at the front of the pack in the handheld gaming race, but a recent Xbox leak could spell the end of the company's winning streak.