Discussion has resumed about whether Microsoft will build a true next-generation Xbox, after a NeoGAF poster known as SneakersSO claimed that plans for a 2026 release are now “up in the air” and that the company may shift to a primarily software-focused strategy. The post, which the author advises should be read with caution, connects several recent developments: sizable price increases for Game Pass, retailer removals of Xbox Series X|S stock, and internal decisions that allegedly indicate Xbox is currently concentrating on publishing and cloud services rather than developing new hardware. You can read the original NeoGAF post.
- There will be even more layoffs at Xbox early next year.
- Costco is the first major retailer to remove the Xbox Series X|S from sale, but others will follow.
- Next‑gen Xbox hardware was originally planned to release in 2026, but is now “up in the air”.
- Xbox will focus on software publishing across all platforms, with an emphasis on its biggest brands.
- It’ll use Game Pass as a Trojan horse for cloud gaming, and further price increases are coming.
Without going into too much detail, not long after the last round of layoffs (next one should be coming in Q1 26 btw – and its going to be just as massive as the last one), some rumblings out of Xbox starting coming out that were a little hard to believe.
The ramifications of the CoD GP gambit not working out were just starting to get properly measured, but the thing that really stuck out to me was that suddenly, really concrete plans for actual MS Xbox HW went from being definitive, to up in the air, which was really startling given that this thing was meant to be out relatively soon. It was one of those situations where, despite folks being told ‘hey, we wanna pull the trigger on this in 2026’, the steps you would need to take in the lead up to delivering a new console gen weren’t being met. Lots of things that were ‘sure things’ started getting pushed. The Costco retailer pulling Xbox, and apparently they are one of many that we’ll learn about soon, told me all I needed to know.
To sum it up: the future of Xbox is software publishing, with a significantly honed-in focus on profitable IPs (CoD, WoW, Minecraft, Candy Crush, Forza Horizon), Cloud gaming being the home of the ‘Xbox platform’, transititioning GamePass into basically becoming the point of entry subscription for xCloud access (which will continue to drive its price tag higher btw, they aren’t done there just yet either), and releasing their software on any device that has a marketplace and users willing to buy their titles.
Maybe some OEM thing will take up the Xbox name, but given what is clearly a collapse in favorable mindshare and faith in said brand, i’m not even sure a 3rd party OEM is gonna want to have an Xbox console by the time MS is done with their reorienting of the division.
Not everyone accepts this version of events. Microsoft has repeatedly stated that it is developing next-generation hardware. As recently as June, the company announced a multi-year partnership with AMD “to co‑engineer silicon across a portfolio of devices, including future first‑party consoles and cloud services.” You can read Microsoft’s announcement on the official Xbox news site.
Take the rumour with a pinch of scepticism. It aligns with some commercial moves people are watching closely, such as Game Pass pricing, but it directly contradicts firm public statements from Microsoft. If Microsoft did scale back or hand off hardware responsibility, Sony would face a market with one fewer direct hardware competitor. That prospect worries some people because competition keeps standards high. PlayStation still needs to make compelling hardware and software: it’s competing with other consoles, PC, and a wide range of entertainment options, so Sony can’t coast.
Realistically, an uncontested market doesn’t guarantee a weaker PS6, but it does change the incentives makers face. Sony may also have a longer transition from PS5 to PS6, so the company will need strong reasons for customers to upgrade. If you’d like to hear one industry voice weigh in, Tom Warren discussed internal reporting on an Xbox podcast; the YouTube live link from that appearance is provided below.
These rumors matter most to Xbox players, third-party partners, and anyone who watches how console competition affects prices and choices. I’d love to hear your thoughts in the comments below. Follow us on X and Bluesky.
