According to the insider, Xbox management initially planned to release new hardware in 2026, but "really concrete plans for Microsoft consoles have become uncertain." Key steps to prepare for the launch of the new generation were not carried out, and previously "accurate decisions" began to be postponed, which indicates a loss of internal coordination.
The insider also noted Costco's decision to stop selling Xbox and claims that other major retailers will soon follow. "The fact that Costco has abandoned Xbox, and this is just the beginning, gave me everything I needed to know," he wrote.
The Verge's editor-in-chief Tom Warren confirmed the legitimacy of the source on the XboxEra podcast: "He is really well informed about internal affairs, I don't think this is a bad source."
If the information is correct, Microsoft is drastically shifting its focus to software and services. The company is going to focus on profitable franchises, including Call of Duty, World of Warcraft, Minecraft, Candy Crush and Forza Horizon, betting on cloud gaming and the Game Pass ecosystem. Subscription will become the main way to access xCloud, with further price increases in the future.