Microsoft Reportedly Ditching Plans For Subsequent Console

The unhealthy information retains rolling in for Xbox players. A brand new report means that Microsoft may very well be abandoning its subsequent console.

A really dependable insider claims that Microsoft is planning some very “intense” modifications for the Xbox model, and we may see them come to fruition within the coming months. 

The primary change, sadly, will come within the type of one other spherical of layoffs heading into Q1 2026, and the corporate’s subsequent console era could by no means see the sunshine of day.

The insider continues by stating that Xbox’s future will focus solely on recreation publishing and can altogether ditch the {hardware} part, highlighting the top-performing IPs in its portfolio whereas now not contemplating the event of recent consoles. 

Whereas that is solely a rumor and needs to be met with skepticism, The Verge’s Tom Warren added gasoline to the hearth when he stated throughout a latest episode of the XboxEra podcast that the supply “is aware of a variety of what goes on internally.”

In one other publish on NeoGAF, the dependable supply, who goes by SneakersSO and in addition occurred to trace at Microsoft’s shift to third-party improvement earlier than it occurred, broke down the whole rumor concerning the way forward for Xbox’s {hardware} and the way the corporate might be transferring ahead. 

Per NeoGAF: 

With out going into an excessive amount of element, not lengthy after the final spherical of layoffs (subsequent one needs to be coming in Q1 26 btw – and its going to be simply as huge because the final one), some rumblings out of Xbox beginning popping out that have been a bit exhausting to imagine.

The ramifications of the CoD GP gambit not figuring out have been simply beginning to get correctly measured, however the factor that actually caught out to me was that immediately, actually concrete plans for precise MS Xbox HW went from being definitive, to up within the air, which was actually startling provided that this factor was meant to be out comparatively quickly. It was a type of conditions the place, regardless of of us being informed ‘hey, we wanna pull the set off on this in 2026’, the steps you would want to absorb the lead as much as delivering a brand new console gen weren’t being met. A lot of issues that have been ‘positive issues’ began getting pushed. The Costco retailer pulling Xbox, and apparently they’re one among many who we’ll study quickly, informed me all I wanted to know.

To sum it up: the way forward for Xbox is software program publishing, with a considerably honed-in deal with worthwhile IPs (CoD, WoW, Minecraft, Sweet Crush, Forza Horizon), Cloud gaming being the house of the ‘Xbox platform’, transititioning GamePass into principally turning into the purpose of entry subscription for xCloud entry (which is able to proceed to drive its price ticket larger btw, they aren’t completed there simply but both), and releasing their software program on any system that has a market and customers prepared to purchase their titles.

Possibly some OEM factor will take up the Xbox identify, however given what’s clearly a collapse in favorable mindshare and religion in stated model, i’m not even positive a third celebration OEM is gonna need to have an Xbox console by the point MS is completed with their reorienting of the division.

We Can Solely Hope This Information Isn’t True

We genuinely hope the information concerning the layoffs doesn’t come to go, as a result of the online game business has been taking a big hit, and many individuals have misplaced their jobs over the previous a number of years.

However it simply looks as if that information is inevitable. As for Xbox’s shift to third-party, it seems to be a completed deal, and following the most recent information concerning the Xbox Recreation Move Final value hike, dropping cash on COD after bringing it to Recreation Move, and the way the Black Ops 7 beta is underperforming in comparison with Battlefield 6, it’s not sounding too good for Microsoft proper now.

You may see reactions to the rumor under.