No, Xbox has not cancelled its next-gen console plans
No, Microsoft has not given up on the console market
Following the widespread circulation of rumours that Microsoft has cancelled its next-gen Xbox console plans, Microsoft has released an official statement refuting these rumours. Microsoft are working on next-generation Xbox consoles, first-party consoles that will be “engineered and built by Xbox”.
Given Microsoft’s recent price hike for Xbox Game Pass, layoffs, and unclear future strategy, gamers have many reasons not to trust Xbox. While Microsoft’s plans can change, the company has already created a partnership with AMD that will see AMD produce next-generation console hardware. Breaking such an agreement would be bad for Microsoft, as it would make them an unreliable business partner.
Microsoft are working on a “portfolio of devices” with AMD. This could open the door to more 3rd party Xbox hardware. Regardless, Microsoft are committed to creating next-generation first-party Xbox consoles. If Microsoft wanted to cancel its next-gen Xbox, it would have done so ahead of its June announcements.
We are actively investing in our future first-party consoles and devices designed, engineered and built by Xbox. For more details, the community can revisit our agreement announcement with AMD.
(Microsoft confirming next-gen Xbox partnership in June 2025)
Let’s be clear, Microsoft is making a next-gen Xbox console. Going cloud-only is not a viable strategy. Microsoft aims to make its games accessible in more locations for a wider audience. Abandoning the traditional console market is not part of this strategy.
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