Recently, a rumor swirled online that Microsoft was canceling its next-generation Xbox plans, but that is apparently not true or the full story. Microsoft said in a statement that it is “actively investing” in future first-party consoles and devices that are “designed, engineered, and built by Xbox.”
The statement, shared with Windows Central, pointed fans to the announcement from June this year that Microsoft is working with AMD on future consoles and devices.
At the time, Xbox president Sarah Bond said Microsoft and AMD will work together to “co-engineer silicon across a portfolio of devices, including our next-generation Xbox consoles. In your living room and in your hands.”
In February 2024, Bond said the next Xbox would offer the “largest technical leap you will have ever seen in a hardware generation.”
What did the original source say?
The rumors that Microsoft had canceled future Xbox hardware plans stemmed from NeoGAF forum member SneakersSO, who said plans for future Xbox hardware had morphed from “really concrete” to “up in the air.” The internet did what the internet does and extrapolated from this that plans for future Xbox devices made by Microsoft had been canceled, even though the source did not say that.
The person added that Microsoft’s future may be more focused on games, and specifically its biggest franchises, including Call of Duty, World of Warcraft, Minecraft, Candy Crush, and Forza Horizon and away from dedicated hardware. To that end, the report said Microsoft will look to further push Xbox Cloud Gaming on more devices to help drive Xbox Game Pass subscriptions.
The Verge’s Tom Warren, a person known for breaking stories about Xbox, said this person is known to have reliable sources and good information. This is presumably part of the reason why the “Xbox is dead” story spread so fast and wide over the weekend prior to Microsoft issuing its statement.
Xbox’s struggles
It’s no secret that the Xbox platform is lagging behind PlayStation this console generation, with monthly US sales reports from Circana showing Xbox regularly ranking third against PlayStation and Nintendo. Microsoft itself has told fans they do not need an Xbox to play Xbox games. Thanks to Game Pass and the cloud, the devices people may already own–including a smartphone or tablet–can play Xbox games via Xbox Cloud Gaming. Microsoft is reminding people of this with its “This is an Xbox” campaign.
Xbox has also faced public perception challenges of late thanks to the company’s mass layoffs, game cancellations, and studio closures. Most recently, the company raised Xbox Game Pass Ultimate’s price by 50%, up to $30/month, with many saying Microsoft is a greedy company looking to squeeze players even more.
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