Microsoft Adresses Next-Gen Xbox Cancellation Rumors

The recent price increases affecting Xbox consoles and Game Pass subscriptions have cast a cloud of doubt on the future of Xbox hardware. It also doesn’t help that a major US retailer like Costco recently decided to stop selling current-gen Xbox consoles.

Over the weekend, a post from a gaming forum member claiming that Microsoft’s next-gen Xbox hardware plans were now “up in the air” received a lot of traction. Microsoft porting more and more of its games to other consoles also makes it increasingly difficult to see the value of Xbox hardware. At $649.99, the Xbox Series X also recently became $100 more expensive than the PlayStation 5 in the US.

So yes, with cratering Xbox console sales, Xbox fans have valid reasons to be worried about Microsoft’s commitment to next-gen console hardware. And as the recent Game Pass price increases risk alienating long-time Xbox fans, Microsoft felt the need to do some damage control over the weekend.

Yesterday, the company dismissed the next-gen Xbox cancellation rumors in a statement shared with Windows Central. “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,” the company said.

The statement referred to Microsoft’s renewed partnership with AMD that was announced back in June. At the time, Xbox President Sarah Bond announced “a strategic multi-year partnership with AMD to co-engineer silicon across a portfolio of devices including our next-generation Xbox consoles, in your living room, and in your hands.”

Windows Central’s Jez Corden validated Microsoft’s official statement regarding future Xbox hardware, adding that Microsoft also isn’t discontinuing current-gen Xbox consoles despite declining sales. “From what I’ve been told, the hardware plans are not even “up in the air,” and remain firmly Xbox’s path forward. Xbox Series X|S hardware production has not ceased, and new stock will go out to retailers at its usual cadence.”

Even though investing in the Xbox ecosystem may not make a lot of sense right now due to rising prices and a lack of exclusive games, Microsoft needs Xbox hardware if it wants game developers to keep supporting the platform. And while a couple of PC games have started appearing on Xbox Cloud Gaming, Microsoft built its cloud gaming service using Xbox hardware and cloud-enabled Xbox games.

Still, the next-gen Xbox console may work more like a PC than a traditional console. The Xbox app on PC now integrates games from other digital storefronts, and earlier this year, Microsoft briefly shared an image of a new Xbox UI showing a Steam integration.