The likelihood that such a project is ongoing, about which Microsoft itself has denied to comment, has increased since The Verge dug into the topic. In doing so, they uncovered supporting evidence of the upgrade, including a patent filed by Microsoft in December that appears to match the functionality of the controller itself based on the leaked images.
Claimed innovations associated with the new controller include: a USB-C port, a built-in battery pack, adjustable thumbstick tension, three-level hair trigger locks, Bluetooth support for Windows 10, longer key travel, a quickswitch between three-preset profiles, and more durable grips.
The original Xbox Elite Wireless controller, released in October 2015 and purchasable for $150 USD, included interchangeable thumbsicks, d-pads, programmable paddles, and hair-trigger locks among other features. The controller was then enhanced by the Xbox Accessories App, which allowed for the creation of customizable profiles for different games and also different play styles within the same game itself.
Without any official word from Microsoft itself, the best chance for official confirmation now is to wait until 2018’s E3, the expo where the original controller was first announced.