Microsoft Rejects Xbox Console Exit Rumors, Confirms Future Hardware Investment

Microsoft Rejects Xbox Console Exit Rumors, Confirms Future Hardware Investment

Microsoft Confirms Commitment to Xbox Console Future Amidst Rumors

Microsoft has swiftly moved to quash recent rumors suggesting the company plans to discontinue the production of future Xbox consoles. Responding to widespread speculation ignited by insider SneakerSO, Microsoft released a statement affirming its ongoing commitment to its gaming hardware division.

The rumors, which quickly gained traction, claimed that Microsoft's plans for new console hardware were 'in limbo.' This came despite Xbox President Sarah Bond's earlier announcement in February 2024, promising that the next-generation Xbox would deliver "the largest technological leap ever." The discrepancy between this promise and the insider's claims fueled concern within the Xbox community.

Insider Claims Pointed to a Major Strategic Shift

According to SneakerSO, a lesser-known but reportedly reliable insider, Microsoft was considering a significant shift in its gaming strategy. The claims suggested that the "Call of Duty in Game Pass gambit had not paid off," and the repercussions of this decision were just beginning to be evaluated. The insider also posited that Xbox would evolve into a multi-platform publisher, prioritizing its most profitable franchises such as Call of Duty, World of Warcraft, and Minecraft across various systems.

Furthermore, SneakerSO's report indicated a renewed focus on cloud gaming, suggesting that Game Pass might eventually transform into a subscription primarily granting access to Xbox Cloud Gaming. A more alarming prediction from the insider was another wave of layoffs at Microsoft, reportedly scheduled for the first quarter of 2026, on a scale similar to the July reductions that saw approximately 9,000 employees depart the company.

Microsoft's Rebuttal: "Actively Investing" in Future Devices

In a direct response to the swirling rumors, Microsoft provided a comment to Windows Central, explicitly stating that the company is "actively investing in its future consoles and other devices." The statement emphasized that these new devices are being developed internally by Microsoft. The company also suggested that interested parties should review the existing partnership agreement between Microsoft and AMD, presumably to reinforce the ongoing commitment to hardware development.

This clarification comes at a sensitive time for Xbox, following recent criticism from users regarding a price increase for Game Pass subscriptions. The swiftness of Microsoft's denial highlights the company's intent to reassure its player base and industry partners about the long-term viability and strategic importance of the Xbox brand and its hardware offerings.

For players, this news reaffirms that Xbox is not exiting the console hardware business. While strategic shifts and evolving business models are always possible, Microsoft's official statement provides a clear commitment to delivering new, internally developed consoles in the future, maintaining a strong presence in the console gaming landscape.

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