PS6 May Go Uncontested as Rumours of Next-Gen Xbox Cancellation Force Microsoft to Comment

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Following widespread rumors this weekend about Microsoft canceling its next-generation Xbox, the company has issued a statement to Windows Central to deny the claims. (Updated Monday, October 6th, 2025, at 3am)

A spokesperson for the company said:

We’re continuing to invest in the development of future Xbox consoles and devices, which are designed, engineered, and built in-house. You can find more information about our plans in the announcement we made with AMD.

We mentioned AMD’s announcement in our previous article, but this recent comment hasn’t really addressed the concerns of gamers.

It’s been noted that Microsoft has often announced plans and then significantly altered its approach later on.

Currently, the company states it’s dedicated to continuing to invest in new hardware. However, it’s still uncertain if this will lead to the development of a finished product.

It’s concerning that this rumor spread so quickly, requiring the company to issue a statement about it, even on a Sunday.

There’s a lot of talk online again about what the future holds for Xbox, and people are unsure what to expect.

Microsoft had a difficult week, starting with a 50% price increase for Game Pass that caused its cancellation page to overload and fail. Now, rumors are circulating that the company might even cancel its next generation of gaming consoles.

This information doesn’t come from reliable sources like Bloomberg or the Financial Times, so it’s best to view it with caution. However, the user SneakersSO on NeoGAF has a history of accurately reporting on Microsoft’s strategies – they were the first to reveal Microsoft’s plan to release games on multiple platforms.

Before the company’s well-known announcement, he was among the first to reveal that Hi-Fi Rush and other Xbox games were planned for release on the PlayStation 5. Since then, almost all of the publisher’s games have followed suit.

Following the recent rumors, Tom Warren from The Verge discussed the source on an Xbox podcast, noting they seem to have a good understanding of what’s happening inside the company. While he didn’t confirm the rumor’s truth, his comments suggest the source might be reliable.

So, what’s he saying? Well, in brief:

  • There will be even more Xbox layoffs early next year.
  • CostCo is the first major retailer to remove the Xbox Series X|S from sale, but others will follow.
  • Next-gen Xbox hardware was originally planned to release in 2026, but is now “up in the air”.
  • Xbox will focus on software publishing across all platforms, with an emphasis on its biggest brands.
  • It’ll use Game Pass as a Trojan horse for cloud gaming, and further price increases are coming.

If you’d like to read the original post exactly as it was written, we’ve included it below.

Shortly after the recent layoffs (with another significant round expected in the first quarter of 2026), some surprising news began circulating about Xbox.

The potential failure of Microsoft’s plan to acquire Activision (Call of Duty) was beginning to have a noticeable impact, but what was most surprising was how quickly concrete plans for new Xbox hardware became uncertain. This was particularly concerning because the new console was expected to launch relatively soon. Despite internal targets for a 2026 release, the necessary groundwork for a new console generation wasn’t happening, and many previously confirmed plans were delayed. The recent news of Costco stopping Xbox orders, and reports that other retailers are doing the same, signaled to me that the situation was serious.

In short, Xbox’s future revolves around publishing games, with a strong emphasis on successful franchises like Call of Duty, World of Warcraft, Minecraft, Candy Crush, and Forza Horizon. They’re positioning cloud gaming as the central ‘Xbox platform,’ and Game Pass will increasingly become a subscription that unlocks access to cloud gaming. Expect Game Pass pricing to continue increasing as they add more features. Ultimately, Xbox plans to release its games on any device with an online store and potential customers.

It’s possible another company might license the Xbox name, but considering the declining public perception and trust in the brand, I doubt any manufacturer will want to build an Xbox console by the time Microsoft finishes restructuring its gaming division.

This creates a problem because it completely contradicts Microsoft’s repeated claims that they are currently developing new hardware.

Just four months ago, in June, the company announced a long-term collaboration with AMD to jointly develop computer chips for a range of products, including its next-generation consoles and cloud services.

For years, Microsoft has appeared inconsistent, frequently shifting its strategies and struggling to communicate a clear, unified vision.

Microsoft might have other companies manufacture the next Xbox, similar to how the Asus Xbox ROG Ally X was made. It’s still unclear if a version like that could compete with the PlayStation 6 in terms of popularity and price.

Which brings us to the PlayStation angle in this story: what would this mean for Sony?

Many people are worried that if PlayStation doesn’t face competition, the quality of its products could decline, and it’s easy to understand why they feel that way.

Honestly, as a fan, it feels like Xbox isn’t really pushing hard to compete with PlayStation right now. But, I gotta admit, they’re still putting out some really good games and services, which keeps me interested.

PlayStation isn’t just competing with other gaming consoles like the upcoming Switch 2 and PCs anymore. It’s up against *all* forms of entertainment – things like Netflix, TikTok, and YouTube are also vying for people’s time. Because of this, PlayStation absolutely has to deliver high-quality products; they can’t afford to release something poorly made.

Honestly, I think Sony’s really going to have to prove the next PlayStation is worth the upgrade from the PS5. A lot of us are happy with what we’ve got, so they’ll need to seriously impress us to get us to switch over. It’s not going to be a quick or easy process for them, they’re going to need to bring their best ideas to the table.

Even if the rumors about the next Xbox are accurate – and it’s best to be cautious about these kinds of reports – we don’t expect it to significantly impact the PlayStation 6.

Look, as a big Sony fan, I’m really hoping they can turn things around. They *need* to come out with something that’s both exciting and doesn’t break the bank, and most importantly, has amazing games. Honestly, that’s still the key to everything – it hasn’t changed at all.

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2025-10-06 06:08