Microsoft has responded to growing rumors that it may cancel its next-generation Xbox console and pivot toward a third-party publishing model. The speculation follows controversial updates to Xbox Game Pass that have shaken user confidence.
Rumors spark concern about Xbox’s future
The current Xbox generation has been defined by frequent strategy shifts rather than consistent success. What began as an ambitious plan to strengthen the brand has evolved into an ecosystem where users struggle to feel a clear sense of identity or belonging. After Microsoft’s latest Game Pass updates—introducing new prices, content changes, and membership conditions—rumors spread online claiming the company might even scrap its upcoming console plans.
Over the weekend, NeoGAF user and well-known insider “SneakersSO” fueled speculation by claiming that Xbox’s next-gen hardware project had moved from active development to “under consideration.” According to the insider, low sales of Xbox Series X|S and recent pullbacks of console stock from major retailers have prompted Microsoft to focus more on cloud services, third-party device support, and establishing itself as a third-party publisher.
Though the claims remain unverified, the insider’s credibility has raised concerns within the community. Journalist Tom Warren from The Verge confirmed on the XboxEra podcast that “SneakersSO” does have industry contacts and insight into Xbox’s internal operations.
Microsoft’s official response
Amid the rising uncertainty, Microsoft addressed the speculation. In a statement sent to Windows Central journalist Jez Corden, the company reaffirmed its commitment to console development:
“We are actively investing in our future consoles and Xbox devices designed and built by us. For more details, the community can review our announcement in partnership with AMD.”
That announcement, dated June 17, confirmed a collaboration between Xbox and AMD to develop next-generation console hardware, devices, and cloud technologies.
Xbox’s current challenges
Despite the official reassurance, Xbox continues to face difficulties. Strategic shifts and unpopular decisions have frustrated many fans. Recent Game Pass price increases and content changes triggered widespread cancellations, overwhelming Microsoft’s support channels.
Reports from Bloomberg journalist Cecilia D’Anastasio indicate that the Game Pass adjustments aim to offset financial losses—reportedly around $300 million—resulting from including Call of Duty: Black Ops 6 and other Activision titles in the subscription service. Microsoft CFO Amy Hood allegedly ordered immediate changes to maximize revenue and profitability.
Whether Xbox can recover from these challenges remains uncertain. For now, the company maintains that its next-generation consoles and devices are still actively in development.
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