Xbox in 2026 — What to expect from Team Green this year, and beyond

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This year marks Xbox’s 25th anniversary, but the celebration is off to a rocky start for some fans. That’s unfortunate, because it should be a happy occasion.

2025 looked incredibly promising for Xbox. They released more first-party games than ever before, and Xbox Game Pass had a particularly strong year with several highly anticipated titles like Expedition 33, Hollow Knight Silksong, DOOM: The Dark Ages, and a remake of Oblivion. The launch of the ASUS Xbox Ally handheld, built in partnership with ASUS, was also a major highlight, bringing Xbox games to a portable device. Microsoft even announced a significant new partnership with AMD to develop the next generation of Xbox consoles. Unfortunately, things didn’t quite pan out as expected.

Unfortunately, those issues won’t be the lasting impression of Xbox in 2025. Microsoft seems to be damaging its own reputation by adding low-quality AI features to everything, laying off a lot of employees while also boasting about AI-generated code, and significantly raising prices. The most expensive Xbox Game Pass plan increased by 50%, and the Xbox Series X|S consoles have become too expensive for many, resulting in a sharp drop in sales.

The situation caused a lot of news stories to appear, with many wondering if Xbox would still be around to celebrate its 25th anniversary on November 15, 2026.

Xbox likely wants to move past the difficulties of the last year, but it’s facing a complex mix of problems, both within the company and from outside forces. Most Xbox players probably won’t notice these issues, but the company is still under close scrutiny from the public.

The four horsemen return, anniversaries abound

We have a good idea of Microsoft’s major game releases planned for 2026. While they have other projects in development, the biggest titles are already confirmed: Fable, Gears of War: E-Day, Halo: Campaign Evolved, and Forza Horizon 6. Within Microsoft, they playfully call these four games the “four horsemen,” as they represent the most well-known and popular Xbox series.

Microsoft plans to reveal some of its upcoming games at the Xbox Developer_Direct event in January, which has become a yearly preview of what’s coming to Xbox. While the exact details are still unknown, it’s likely we’ll see updates on four major franchises. Plus, I’ve heard one of Microsoft’s teams might have a surprise reveal in the works.

There’s been speculation that a countdown on the Fallout TV show’s website might mean a surprise release of a new Fallout game or a remastered version of an older one, but that’s not happening. What *is* coming is a remake of Fallout 3, similar in style to the Elder Scrolls IV: Oblivion Remastered, and a version of Fallout: New Vegas is also in the works. Obsidian Entertainment, known for games like Grounded, The Outer Worlds, and the original Fallout: New Vegas, currently has four projects underway, ranging in size. Notably, Tim Cain, a key creator of the Fallout series, recently joined the studio. While it’s unclear if any of these projects are Fallout-related, it’s clear Xbox is committed to consistently releasing new content.

Regarding the future of the Fallout series, Fallout 5 is confirmed to be in development. Todd Howard from Bethesda has mentioned the company is heavily investing in the Fallout franchise. While it will likely be some time before the game is released, we might get a first look or some hints at an event in the near future.

I’ve noticed 2026 is going to be a big year for Xbox and the companies it owns. Xbox itself will be celebrating 25 years, while Blizzard reaches 35, and Bethesda hits 40! Microsoft is already working on plans for events and announcements to mark all these important anniversaries.

I’m predicting big announcements at Blizzcon 2026! We’ll likely see new expansions for both Diablo IV and World of Warcraft (“The Last Titan”), plus significant updates to Overwatch and Hearthstone. There’s a good chance we’ll also hear about new mobile games – rumors have been circulating for a while about an Overwatch mobile game, and I’ve also heard about another Warcraft project in development. However, the biggest news will probably be about StarCraft. Reports suggest it’s getting a complete overhaul as a third-person shooter, and I’ve confirmed this through my own sources.

With Bethesda celebrating its 40th anniversary, will we finally see what id Software is working on next? There’s been a lot of speculation they might revisit classic franchises like Quake or Hexen, now that Microsoft owns all the necessary rights. Meanwhile, MachineGames is reportedly developing a multiplayer game similar to Rainbow Six Siege, though sources also suggest Wolfenstein III is in development to tie in with the new Wolfenstein TV show on Amazon.

We might see some of these games revealed at Bethesda’s Quakecon, but the biggest announcements are usually saved for the Xbox Showcase. Xbox typically hosts this event in June, alongside Summer Game Fest and the start of the summer gaming season. That’s where we expect to get our first look at games planned for 2027, potentially including titles like Clockwork Revolution from inXile, State of Decay 3 by Undead Labs, and Blade from Arkane, as well as some completely new surprises.

Ninja Theory’s upcoming game is expected to have more action and player interaction than their previous Hellblade titles, but will still maintain the high-quality visuals they’re famous for. We’ll definitely see a preview of Call of Duty: Modern Warfare 4, as Activision wants to regain fan trust after the mixed reception to Black Ops 7. Plus, Call of Duty is finally coming to the Nintendo Switch 2 this year, keeping Microsoft’s promises. There’s also talk of a new Age of Empires game being developed using Unreal Engine, and we might get a better look at Hideo Kojima’s upcoming horror project, codenamed “OD,” later this year.

Many exciting things are still under wraps for Xbox. We know Xbox Publishing has several unannounced projects in development, and their popular online games – including Minecraft, Grounded 2, Fallout 76, Elder Scrolls Online, and various King titles – will likely receive significant updates this year. Fans are also wondering if Toys for Bob will finally reveal the long-awaited Spyro game, and what the Xbox team at Elsewhere Entertainment is currently working on. We may get answers to these questions sometime in 2026.

A plethora of PC platform updates

I’ve already published an article outlining the planned updates for the Xbox Ally through 2026, and some of those improvements might arrive before then. Even if you don’t own an Xbox Ally, it’s worth following its development – the features and experience on the Ally are likely to shape the future of Xbox.

So, remember last year when I said the next Xbox would basically run Windows? That’s still happening! Microsoft is teaming up with AMD to use a special full-screen version of Windows 11, accessed through the Xbox PC app, to create the console’s interface. They’re doing a *lot* of work on that app, making it feel much more like the Xbox experience you’re used to on your TV, instead of just a PC program. It’s all about bridging that gap and making it seamless!

Unlike a typical PC, this device can play games designed for Xbox One and Xbox Series X|S. Microsoft is working with AMD to make this possible, and players will be able to access their existing Xbox game collections on the new device. This highlights Microsoft’s continued dedication to supporting older games on new platforms.

We’ll likely learn more about Xbox’s plans to update how it works with game developers at GDC 2026, especially as they move towards a more open approach. Currently, developers earn a larger percentage of revenue from games on Xbox PC compared to console, but Microsoft still faces challenges in getting developers to actively support the PC platform. While bringing games to console will help, I expect the Xbox Series X|S will remain the main focus for most developers for at least a few years.

Microsoft is moving towards a more open approach to Xbox game publishing, similar to Steam, and has already relaxed some of its rules. However, finding good games on the Microsoft PC store is still a challenge. While the more open platform allows more games to be listed, it also means a lot of low-quality games are available, making it hard to find the best ones. Better features like reviews, comments, and ways for players to interact with each other could help the store recommend better games, and hopefully, Microsoft will add these features soon.

We’re expecting to see new Xbox consoles and accessories this year. Rumors suggest a new Elite Controller Series 3 is likely, along with updates to other controllers. It’s also believed that the next generation of Xbox controllers will connect directly to WiFi, which should improve cloud gaming by removing delays caused by Bluetooth. We might also see more officially licensed Xbox-branded devices, like the Xbox Ally, that work with Windows to provide a full-screen Xbox experience.

A ton to look forward to, with caution

While Xbox seems to be doing well overall, it’s facing some hurdles. Sales of the Xbox Series X|S consoles are dropping significantly, but players who already own one are very active and continue to use the system frequently. Interestingly, even though more people own PlayStation consoles, some games like Helldivers 2 and Arc Raiders are surprisingly popular on Xbox, giving publishers a good return on their investment. This potential for profit is why publishers are still supporting Xbox, even though fewer new players are joining the platform.

Xbox is performing well on PC, and Microsoft might start including PC gaming numbers in its financial reports to showcase this growth. Offering perks within popular games like Fortnite, League of Legends, and Valorant has attracted a new player base to Xbox on PC, providing competition to Steam. However, getting games outside of the Xbox Game Pass subscription service to fully support the platform organically remains a hurdle.

Microsoft is facing a lot of scrutiny, and rightfully so. CEO Satya Nadella has openly discussed the company’s strong focus on AI, even if it doesn’t always deliver a great experience for users. This has led to the trending hashtag “Microslop,” reflecting public criticism.

Rumors about large layoffs at Microsoft in January 2026 have been circulating, but sources say these aren’t true, particularly concerning the Xbox division. However, Microsoft, like many other companies, will likely be affected by the current oversupply of DRAM memory, which will be difficult to avoid.

Almost anything that runs on a computer is expected to become more expensive this year. This is because companies like OpenAI are purchasing large quantities of computer components to meet rapidly growing demands for processing power. This could affect the prices of consoles, PCs, and even video games. While Xbox isn’t the only one facing these economic challenges, its brand has already been struggling.

It’s understandable why many people have been concerned about the future of Xbox and Microsoft’s dedication to gaming. However, I’m optimistic that this year will be a turning point, and Xbox will prove it’s a strong and lasting presence in the gaming world.

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2026-01-07 17:44