Microsoft has officially responded to reports suggesting that its next-generation Xbox console might be canceled. The statement follows a weekend of speculation sparked by insider claims that the project had been put “up in the air.”
Insider Claims Spark Speculation
On October 4, NeoGAF user SneakersSO, known for previous Microsoft-related leaks, posted that the announcement of Call of Duty joining Xbox Game Pass had cost the company millions. According to the user, this financial strain allegedly cast doubt on the future of the next-generation Xbox, which some internal staff were told might need to be ready as early as 2026.
The insider further suggested that Xbox’s focus could be shifting toward software and services rather than console hardware — a move that aligns with Microsoft’s broader push to integrate Game Pass and cloud streaming across multiple platforms.
Microsoft Reaffirms Its Commitment to Hardware
In a statement issued on October 5, Microsoft dismissed the rumors and reassured fans of its ongoing investment in future consoles:
“We are actively investing in our future first-party consoles and devices designed, engineered, and built by Xbox. For more details, the community can revisit our agreement announcement with AMD.”
The reference to AMD points back to the June 2025 announcement of a multi-year partnership between Microsoft and AMD. The collaboration aims to power the next Xbox generation with advanced graphics and improved performance, underscoring Microsoft’s intention to stay in the console hardware space.
Growing Frustration Over Recent Xbox Changes
Despite the confirmation, the timing of the statement comes amid a series of unpopular decisions by Xbox. On October 1, the company revealed a price increase for Xbox Game Pass, with the Ultimate tier rising by 50% to $29.99 per month. The move triggered widespread backlash, with users reportedly crashing the Xbox website as they attempted to cancel their subscriptions.
Xbox also began displaying Game Pass advertisements on home screens, a move seen by some as a desperate attempt to retain subscribers. This follows earlier price hikes for both the Xbox Series X and Series S consoles, as well as the announcement of the Xbox ROG Ally X, which launches on October 16 for $999.
Retail Shifts Add Fuel to the Fire
Adding to the speculation, Costco recently removed all Xbox consoles from its stores and website, citing the move as a “business decision.” According to the same insider, Costco could be the first of several retailers planning to phase out Xbox hardware, though no other chains have confirmed similar actions.
Conclusion
While Microsoft’s recent actions have raised concerns among fans, the company’s latest statement indicates that its console plans remain intact. With its continued AMD partnership and next-gen development efforts, Xbox seems determined to stay in the hardware race — even as it doubles down on digital services and subscription-based gaming.
