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So in the present day, rumors started to swirl throughout the web that Xbox is planning to exit {hardware}, and transfer fully to Xbox Cloud Gaming as the first strategy to entry content material. I can verify by way of very trusted sources that this is not true. At least for now.
UPDATE (Oct 5, 2025): Microsoft has supplied the next assertion, echoing our earlier report: “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.”
But that, “at least for now” qualifier is an actual downside. How can we all know what shall be true subsequent quarter? Let’s put apart for a minute the truth that Xbox Game Pass stays a major driver of income, and is most prolific on Xbox console {hardware} — and that is the place the majority of the customers are proper now. Let’s put apart the truth that Xbox Cloud Gaming is restricted by location and is dear to run.
Combine that with the fact that with the same silicon, you could give people their own “cloud” natively in their house — and get them to use their own electricity to power it. You know, like a console. It doesn’t make a lot of sense on paper. But regardless, that’s where we’re at.
UPDATE: Microsoft has at least confirmed that, for now, that the rumors are false, as noted in the statement above. But how did we get here? The original report continues below.
All of these rumors emerged within the wake of Microsoft’s barely-explicable 50% worth rise in Xbox Game Pass Ultimate, and the bizarre tone-deaf method during which they tried to current it as a “good thing” throwing in Fortnite Crew and stuff individuals did not actually ask for.
The reality these newest {hardware} exit rumors proceed to appear believable is an actual downside, regardless of the supply of the rumors. It showcases, to me, a really deep disconnect between Microsoft and the way its viewers and the neighborhood at massive views gaming basically.
Microsoft’s multi-year partnership with AMD for next-gen Xbox hardware is still the present plan
I might simply be simply as random a supply claiming that Xbox {hardware} continues to be on the desk, but it surely was our sources that confirmed the existence of the Xbox Series X|S, their specs, their worth, along with reviews on the cancelled cloud “Keystone” console, the shelved first-party Xbox handheld, and extra not too long ago, the Xbox Ally. Codenamed Kennan and comprised of Omni (Xbox Ally) and Horseman (Xbox Ally X), the Xbox Ally vary is a part of Microsoft’s multi-year partnership with AMD, which can embrace tailored gadgets from first occasion.
I’ve requested a number of trusted sources, lots of whom spoke to me on the above gadgets beforehand which turned out to be true, about what Xbox’s current {hardware} posture is. And with Microsoft’s affirmation, there is no motive to suppose something is altering.
Microsoft publicly confirmed that it is nonetheless dedicated to first-party Xbox {hardware} over the summer season, with feedback from each President Sarah Bond and AMD CEO Lisa Su on silicon that might energy next-gen Xbox gadgets — each from third and first-party. The assertion reiterates this dedication.
The unique feedback got here from a gaming discussion board, and steered that Xbox’s focus can be on its core mega franchises like World of Warcraft, Call of Duty, Forza Horizon, and so forth, and that {hardware} plans have been “up in the air,” not really cancelled. Those feedback morphed into “Xbox hardware is cancelled” from varied commentators, and have now taken on a lifetime of their very own on social media as individuals speculate on the way forward for the Xbox platform. From what I’ve been informed, the {hardware} plans should not even “up in the air,” and stay firmly Xbox’s path ahead. Xbox Series X|S {hardware} manufacturing has not ceased, and new inventory will exit to retailers at its common cadence.
But even when Microsoft did come out to squash the rumors themselves, it is laborious to have any religion. Microsoft has been extremely fickle over the previous few years, crushed beneath AI hype, calls for from CFO Amy Hood, and a whole dereliction of fan suggestions.
The deliberate restructuring of Xbox Game Pass was months within the making and, past their obvious macroeconomic “need” to make even extra cash, it is primarily based on consumer conduct and the will to spice up the content material fund for the cohort probably to unsubscribe with out new content material. Codenames showing for the brand new tiers over the summer season, and isn’t the results of a quarterly knee-jerk response. But it does not matter.
Combined with big worth hikes, retailers like Costco and others eradicating Xbox {hardware}, and Microsoft’s huge layoffs over the summer season — it isn’t unsurprising individuals are speculating on Xbox’s demise. Microsoft is totally terrible at managing religion in its shopper merchandise, and I’ve written beforehand about how the telemetry driving its selections and its diffuse focus is resulting in a collapse in morale within the model.
Gaming is just not a necessity, or a utility — it is pushed by sentiment and “fun” feeling. individuals have to additionally really feel good about the place they play, and Microsoft is making it extremely laborious to really feel good about Xbox proper now. It’s clearly reaching a disaster level.
Xbox the pariah
I’ve been masking Xbox for over ten years at this level, and I began when Microsoft’s bombed Xbox One reveal led to a groundswell of hate for the model and its future. It was fostered by a way of betrayal in what Xbox had been and represented, and led to an enormous climb down that successfully dismantled the Xbox One platform — and put Xbox firmly in “third-place” endlessly. Lately, it looks like we’re again in 2013 once more.
The trade seems very completely different in 2025, as maturing audiences and a scarcity of significant new participant development has firms breaking the foundations to search out new income streams. We’ve seen Xbox games flood onto PlayStation, we’ve even seen PlayStation bring games to Xbox. Microsoft is licensing out the Xbox brand to OEMs with the Xbox Ally (and I’m told more OEM hardware should appear in 2026, too).
The inconsistency is exhausting for fans, and in a sentiment-driven business, potentially untenable.
The one constant that Xbox fans could point to among all of this was the clear value of Xbox Game Pass. “Xbox Game Pass is the best value in gaming,” or so the meme goes. Despite some price rises over the past couple of years, it was hard to overlook what a stellar year it had thus far, with games like Expedition 33, Blue Prince, DOOM, The Elder Scrolls: Oblivion remake, and others. But with an unprecedented 50% price increase on the tier that actually gets day one games, the negative reaction has been incredibly strong.
It all just feels like another betrayal, particularly given President Sarah Bond’s comments that Xbox Game Pass is profitable, and also hitting $5 billion in revenues. The way Xbox presented the “changes” as a “good thing” came across as tone deaf, especially given how other companies are pushing up prices while also simultaneously reporting record profits.
So, it’s hardly surprising that these rumors gained so much traction, because even if they’re not true today, they could definitely be true tomorrow. It’s hard to take anything what today’s Xbox says or does on faith, because they’re apparently willing to throw anything and everything on the fire if it means a quarterly boost.
The inconsistency is exhausting for fans, most likely concerning for developers — and in a sentiment-driven business, potentially untenable.
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