No, Xbox’s next gen console hardware plans aren’t cancelled — for now (UPDATE)


So today, rumors began to swirl across the internet that Xbox is planning to exit hardware, and move entirely to Xbox Cloud Gaming as the primary way to access content. I can confirm via very trusted sources that this isn’t true. At least for now.

UPDATE (Oct 5, 2025): Microsoft has provided the following statement, echoing our previous 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 a real problem. How can we know what will be true next quarter? Let’s put aside for a minute the fact that Xbox Game Pass remains a primary driver of revenue, and is most prolific on Xbox console hardware — and that’s where the bulk of the users are right now. Let’s put aside the fact that Xbox Cloud Gaming is restricted by location and is expensive to run.



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