Sharma, who recently took over from veteran Phil Spencer, revealed the plans directly in a post on X.
The post didn't provide any details other than that the project is using the codename Helix and will be focused on performance. It will also be able to play PC games, and Sharma says she will discuss the console more at the GDC developer conference next week.
The current generation consoles are the Series X and Series S and are the fourth generation in the Xbox family, but are counted as the ninth overall. The consoles sit alongside main competitor Sony's PlayStation 5. They were released in November 2020.
