No, Xbox’s next gen console hardware plans aren’t cancelled — for now, but it’s a problem that it was really easy to believe

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Today, rumors spread online suggesting Xbox might stop making consoles and focus solely on cloud gaming. I’ve confirmed with reliable sources that this isn’t happening-at least not yet. However, the fact that it’s only ‘for now’ is concerning. It’s hard to predict what Xbox’s plans will be in the future.

If we temporarily ignore how important Xbox Game Pass is to Xbox’s income – and the fact that most Game Pass users play on Xbox consoles – and also set aside the limitations and costs of Xbox Cloud Gaming, something interesting emerges. Considering the same technology could be used to let people create their own local “cloud” powered by their home electricity – essentially, like a traditional console – the current direction seems a bit odd. Nevertheless, this is the path Microsoft is taking.

The rumors started after Microsoft unexpectedly raised the price of Xbox Game Pass Ultimate by 50%. They also received criticism for how they announced the increase, trying to spin it as a positive change by adding perks like Fortnite Crew, which many subscribers hadn’t requested.

It’s concerning how believable these rumors about Microsoft potentially leaving the hardware market continue to be. It really highlights a significant difference in perspective between Microsoft and what gamers and the wider gaming community want.

Microsoft’s multi-year partnership with AMD for next-gen Xbox hardware is still the present plan

It would be simple to speculate about future Xbox hardware, but we have a proven track record. Our sources accurately revealed the Xbox Series X|S, including its specifications and price, as well as details about cancelled projects like the cloud-based “Keystone” console and a first-party Xbox handheld. More recently, we reported on the Xbox Ally, internally known as Kennan (comprising Omni and Xbox Ally X). This range of devices is a result of Microsoft’s long-term partnership with AMD, and will feature custom-built hardware.

I’ve checked with several reliable sources – people who’ve given me accurate information before – about Xbox’s current hardware situation. As of now, there haven’t been any changes.

Microsoft reaffirmed its dedication to creating its own Xbox consoles this summer. Both Xbox President Sarah Bond and AMD CEO Lisa Su spoke about the technology that will power future Xbox devices, including components made by both AMD and Microsoft themselves.

The rumors about Xbox cancelling its hardware started on a gaming forum. Initial comments suggested Xbox would continue to focus on its biggest games – titles like World of Warcraft, Call of Duty, and Forza Horizon – while its future hardware plans were still being decided, not cancelled. However, these comments were quickly misinterpreted by others as a complete cancellation, and that idea has now spread widely on social media, fueling speculation about the future of Xbox. According to my sources, the hardware plans are actually still on track, and Xbox remains committed to its console business. Production of the Xbox Series X|S hasn’t stopped, and retailers will continue to receive new units as usual.

Even if Microsoft officially denied the rumors, it would be difficult to believe them. The company has been inconsistent lately, heavily influenced by the excitement around AI, pressure from their CFO Amy Hood, and a tendency to ignore what fans actually want.

The changes coming to Xbox Game Pass have been planned for months. While economic factors certainly play a role, the main reason behind them is how players use the service. Xbox wants to keep subscribers engaged – especially those likely to cancel without fresh content – and strengthen its ability to fund new games and experiences. Evidence of these new tiers surfaced over the summer, showing this wasn’t a hasty decision made in response to recent performance. Ultimately, however, none of that context seems to matter.

As an analyst, I’m not surprised by the recent speculation about Xbox’s future. Considering the significant price increases we’ve seen, coupled with major retailers like Costco dropping Xbox hardware, and Microsoft’s substantial layoffs earlier this year, it all adds up to a concerning picture. It’s natural for people to question what’s next for the platform under these circumstances.

Microsoft struggles to maintain customer trust in its products. I’ve discussed before how its data collection practices and lack of clear direction are hurting the brand’s reputation and employee morale.

Gaming isn’t essential like food or utilities-it’s about enjoyment. Players also need to *feel good* about the platform they’re using, and right now, Microsoft is making it difficult to *feel good* about Xbox. The situation is quickly becoming critical.

Xbox the pariah

I’ve been writing about Xbox for more than a decade, starting with the negative reaction to the original Xbox One announcement. Many fans felt let down by the direction Microsoft was taking, and that led to significant changes that ultimately hampered the Xbox One’s success, seemingly pushing Xbox into third place in the console market. Recently, things feel a lot like they did back in 2013.

The gaming industry will look quite different by 2025. With existing players aging and few new ones joining, companies are trying new things to make money. We’re already seeing games traditionally exclusive to Xbox appear on PlayStation, and vice versa. Microsoft is even allowing other hardware manufacturers to use the Xbox brand, like with the Xbox Ally, and reports suggest more of these partnerships are coming in 2026.

This back-and-forth is tiring for fans, and could ultimately be damaging to the business, which relies heavily on how people feel.

Xbox fans have always been able to rely on the great value offered by Xbox Game Pass – it’s often called the best deal in gaming. Even with some price increases recently, it’s had a strong year with games like Expedition 33, Blue Prince, DOOM, and a remake of The Elder Scrolls: Oblivion. However, a sudden and significant 50% price hike on the plan that includes new releases on day one has caused a very negative reaction from players.

The recent changes feel like a letdown, especially considering President Sarah Bond stated Xbox Game Pass is already profitable and generating $5 billion in revenue. Presenting these changes as positive seemed out of touch, particularly with other companies raising prices while still announcing record earnings.

It’s easy to see why these rumors spread – even if they aren’t accurate now, things could easily change. It’s difficult to trust anything Xbox says or does, as they seem willing to abandon previous commitments for short-term gains.

Fans are getting tired of the constant changes, and this could be a real problem for the business, as it relies so heavily on how people feel.

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2025-10-05 19:10