This past week turned chaotic for Xbox fans as one forum thread exploded into claims that Microsoft was preparing to move on from hardware.
By the time gaming media picked up the story, the narrative had shifted to claims that Xbox had stopped making consoles and was preparing to focus solely on software and cloud services.
Microsoft released a rare direct statement saying it is still investing in Xbox hardware and has no plans to leave consoles.
What Did Insiders Claim About Xbox’s Hardware Roadmap?
The uproar began with NeoGAF user SneakersSO, known for past accurate tips on Xbox moves, such as bringing Hi-Fi Rush to PlayStation.
SneakersSO revealed that what had been a clear 2026–2027 release plan for a new Xbox is now unsettled.
According to the leak, Microsoft had been preparing to greenlight a successor to the Xbox Series X|S, but key milestones weren’t being met.
Internal teams allegedly slowed or paused the steps normally required to bring a console to market.
The same post warned that another large round of layoffs could hit Xbox in early 2026 and that some retailers were already retreating.
Costco was named as the first major chain to delist Xbox consoles, with others supposedly preparing to follow.
Xbox was reportedly planning to double down on software and Game Pass while easing off the traditional console rivalry with Sony.
Xbox is built on heavy hitters like Call of Duty, Minecraft, Forza Horizon, World of Warcraft, and Candy Crush, accessible across console, PC, cloud, and mobile platforms.
The post suggested that Game Pass would also become the main way players enter the Xbox ecosystem, even as its cost keeps climbing.
Did Microsoft Confirm or Deny Canceling the Next Xbox?
Microsoft told Windows Central it is” actively investing” in future first-party consoles and Xbox-built devices.
It also pointed to its multi-year silicon partnership with AMD as proof that next-generation hardware remains part of its roadmap.
Even without addressing every accusation, especially the talk of layoffs and retail store closures, Microsoft made it clear that it wants to put an end to the notion that Xbox consoles are outdated.
Do Ex-Microsoft Execs Think Xbox Is Lost?
Mike Ybarra, former Xbox executive and ex-Blizzard president, said on social media after Sony reported record PlayStation profits that the console market isn’t a successful business unless it’s done right.
When challenged by a fan, he bluntly said, “Your console is dead,” which many interpreted as a jab at Xbox’s current position.
Ybarra has been critical of Microsoft’s gaming direction for a while, saying the company seems “confused” about what Xbox should be and urging leadership to “pick a lane and stick to it.”
Though he didn’t validate any rumors, his statement added to the growing doubt around Xbox’s hardware roadmap.
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