Rumors Cast Doubt on Xbox’s Next Console Plans as Microsoft Reaffirms Hardware Commitment

Insider report claims a shift toward software publishing, but Microsoft publicly denies stepping away from console development.

Recent online rumors have sparked debate over the future of Microsoft’s Xbox hardware strategy, suggesting the company may be rethinking its commitment to producing a next-generation console. However, Microsoft has issued a clear statement reaffirming its investment in future Xbox devices.

According to a report published by Insider Gaming, a user on the NeoGAF forum—known as “SneakersSO” and previously associated with accurate industry leaks—claimed that Microsoft’s plans for its next Xbox console are “in doubt.”

The insider suggested that Microsoft is preparing to pivot more heavily toward software publishing and cloud-based services, focusing on major intellectual properties such as Call of Duty, Minecraft, and Forza. The rumor further alleged that Xbox hardware development had stalled, pointing to signs such as potential layoffs in early 2026 and select retailers—such as Costco—allegedly scaling back Xbox hardware inventory.

Insider Gaming noted that these claims should be taken “with a pinch of salt,” emphasizing that none of the information has been independently verified.

Microsoft Responds, Reaffirms Console Development

In response to growing online speculation, Microsoft issued a statement to Insider Gaming addressing the rumors. “We are actively investing in future first-party consoles and devices built by Xbox,” a Microsoft spokesperson said in a follow-up article.

The company also referenced its ongoing partnership with AMD as an example of its continued commitment to hardware development. This partnership is widely believed to be linked to the design and production of chips used in future Xbox consoles.

However, Microsoft did not comment on the specific claims of layoffs or changes in retailer strategies mentioned in the original rumor.

The contrasting narratives have fueled debate among fans and industry observers. On one hand, the rise of Xbox Game Pass and Microsoft’s push into cloud gaming support the idea that the company could eventually reduce its reliance on traditional console sales. On the other hand, Microsoft’s explicit statement and its relationship with AMD suggest that console development remains part of its long-term strategy.

For now, the claims remain unverified rumors. Microsoft’s official position is clear: it is continuing to invest in future Xbox hardware, even as speculation about strategic shifts circulates online.