PS6 May Go Uncontested as Rumours of Next-Gen Xbox Cancellation Spiral

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The web is, perhaps tediously, once again awash with speculation of Xbox’s unclear future.

It’s been a rough week for Microsoft. First, they raised Game Pass prices by a whopping 50%, and honestly, the backlash was so intense it even crashed their cancellation page! Now, on top of all that, I’m seeing even more rumors that they might actually cancel their next-gen console. It’s a bit scary as a fan, to be honest.

Since the information doesn’t come from trusted sources like Bloomberg or the Financial Times, it’s best to view it with a critical eye. Still, the person who shared this – known online as SneakersSO on NeoGAF – has a track record of accurately reporting on Microsoft’s strategies, as they were the first to reveal the company’s intention to release games on multiple platforms.

Back in early 2024, before the company’s well-known business update, he was among the first to reveal that Hi-Fi Rush and other games from Xbox Game Studios were planned for release on the PS5. Since then, we’ve seen almost all of the publisher’s games follow suit.

Following the spread of this recent rumour, Tom Warren from The Verge discussed it on an Xbox podcast. He noted that the person who shared the rumour seems to have a good understanding of what’s happening inside the company. While this doesn’t confirm the rumour is true, it does suggest the source might be reliable and have inside knowledge. It adds a degree of credibility to their claims.

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 a focus on its biggest brands.
  • It’ll use Game Pass as a Trojan horse for cloud gaming, and further price increases are coming.

For those of you who want to read the original post in its entirety, we’ll include it below:

So, things have been pretty crazy over at Xbox lately. Just after the last big round of layoffs – heads up, I’m hearing another one is coming in Q1 ’26, and it’s supposed to be huge, just like the last one – I started hearing some stuff that honestly seemed a little far-fetched. I mean, as a gamer, you hear rumors all the time, but this felt different. It was like something big was brewing, and not in a good way.

The full impact of the failed attempt to acquire Call of Duty through Game Pass was only beginning to be understood, but what really stood out was the shift in Microsoft’s Xbox hardware plans. Concrete plans for new Xbox consoles suddenly became uncertain, which was surprising considering the planned release was relatively soon. It was a situation where, even though people were told a 2026 launch was the goal, the necessary steps to prepare for a new console generation weren’t happening. Many things previously considered certain were being delayed. The fact that Costco stopped carrying Xbox, and reports suggest they aren’t alone, signaled everything I needed to know.

In short, Xbox’s future revolves around publishing games, with a strong emphasis on successful franchises like Call of Duty (CoD), World of Warcraft (WoW), Minecraft, Candy Crush, and Forza Horizon. Cloud gaming will be the core of the Xbox platform, and Game Pass will evolve into a subscription service primarily for accessing xCloud. Expect the price of Game Pass to continue increasing, as they plan to further develop this offering. Ultimately, Xbox intends to release its games on any device with a digital storefront and a potential customer base.

It’s possible another company might use the Xbox name, but considering the clear decline in how people view and trust the brand, I doubt any third-party manufacturer will want to be associated with an Xbox console by the time Microsoft finishes restructuring the division.

The issue here is that this completely goes against what Microsoft has been stating. They’ve repeatedly emphasized that they are currently developing new, next-generation hardware.

Just four months ago, in June, the company announced a long-term collaboration with AMD. They plan to work together to design custom computer chips for a range of products, including their next-generation consoles and cloud services.

However, the company based in Redmond has appeared rather inconsistent for years, frequently altering its strategies and struggling to deliver a clear, unified message.

There’s a chance Microsoft might have other companies manufacture its next Xbox, similar to how they partnered with Asus on the Xbox ROG Ally X. It’s still uncertain whether a device like that could become widely available – and competitively priced – compared to a standard PS6.

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 strong competition, the quality of their products could decline, and it’s easy to understand why. However, it’s worth pointing out that Xbox isn’t currently providing much of a challenge to Sony, even though Sony continues to offer attractive software and services.

These days, PlayStation isn’t just competing with other gaming consoles. It’s up against all types of entertainment – things like Netflix, TikTok, and YouTube are just as much competition as the Switch 2 and PC gaming. Because of this, PlayStation absolutely cannot release a low-quality product.

Additionally, we strongly believe Sony will face a significant challenge persuading players to upgrade from the PS5, which could result in a gradual and extended shift to a new system. They’re going to need to really deliver with their next console – bring their A-game, so to speak.

It’s unclear if the rumour about the next Xbox is accurate – and we recommend taking it with a grain of salt – but we don’t anticipate it having a significant impact on the PS6.

Sony faces a significant challenge and must release an attractive, reasonably priced product with a strong game lineup. The situation remains the same.

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2025-10-05 18:08