Fresh rumours of a next-gen Xbox cancellation erupted over the weekend enough to prompt Microsoft to issue a rare Sunday statement.
Microsoft speaks out on next-gen Xbox speculation
Microsoft has now responded to the swirling rumours, telling Windows Central:
“We are actively investing in our future first-party consoles and devices designed, engineered and built by Xbox.”
This statement follows escalating online chatter suggesting the next-gen Xbox may have been shelved. Though vague, it points back to Microsoft’s previously announced partnership with AMD to co-engineer future hardware.
Even so, many fans remain unconvinced, citing past moments where the company changed direction after making similar claims.
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Why this next-gen Xbox rumour caught fire
The new wave of speculation began with a post on NeoGAF by user SneakersSO, who had accurately leaked Microsoft’s shift to multiformat releases early in 2024. In this post, they outlined a grim outlook for Xbox hardware, suggesting internal confidence had evaporated.
Here’s what the rumour included:
- New Xbox layoffs expected in early 2026
- Major retailers like Costco are dropping Xbox from their shelves
- Next-gen Xbox timeline “up in the air”
- Microsoft is shifting focus to software and cross-platform publishing
- Game Pass to become a cloud-first gateway with higher pricing
Mixed signals about Xbox’s future
Despite the AMD partnership and ongoing console sales, Microsoft has struggled to present a consistent vision. It’s possible the hardware division could be downsized or licensed out to OEMs, similar to what happened with the ASUS ROG Ally X.
Even if Xbox hardware doesn’t disappear, the brand might shift into something more like a service wrapper than a traditional console family.
What could this mean for PS6?
If the next-gen Xbox does lose steam or vanish entirely, Sony could face less direct competition. But that’s not necessarily good news. A one-horse console race risks complacency.
Still, the PS6 won’t have an easy path. Sony faces pressure from PC, mobile, and even non-gaming platforms like TikTok and Netflix. Convincing players to upgrade from PS5 will be a challenge in itself.
Xbox rumours swirl, but nothing’s official yet
Until Microsoft makes a more concrete announcement, the next-gen Xbox remains officially in development. But the weight of past pivots and quiet exits hangs over every vague reassurance.
This time, saying the right thing may not be enough to silence doubt.
