In recent hours, rumors have surfaced that Microsoft is allegedly leaving the console market to focus exclusively on cloud gaming. However, the company quickly released an official statement.
"We are actively investing in the future of our consoles and our devices, designed, engineered, and built by Xbox," the statement from October 5, 2025, reads. This confirms that the next generation is already in development, as part of a long-term strategic agreement with AMD.
The rumors arose amid fan dissatisfaction caused by the 50% price increase of Xbox Game Pass Ultimate, recent mass layoffs at Microsoft, and the disappearance of consoles from retailers' catalogs.
Journalist Jez Corden from Windows Central, who is close to Xbox, confirmed that he had spoken with reliable internal sources: the device lineup has not been suspended or closed. Moreover, new internal devices codenamed Kennan are being prepared, including the Omni and Horseman models from the Xbox Ally series, created in collaboration with ASUS.
Microsoft also confirmed that the production of Xbox Series X|S continues as planned, and new batches will arrive in stores according to schedule. The company remains committed to the hardware line, although it is experimenting with new business models, including licensing the Xbox brand to OEM partners, planned for 2026.
