When Xbox first announced that it was shifting strategies and would begin releasing games on other platforms, many speculated that it was exiting the console market. After all, a console without exclusives might struggle to sell, fueling widespread rumors at the time.
However, Xbox soon confirmed that it had no plans to leave the console business. In fact, it was later revealed that the gaming giant was already working on a next-gen console. At that point, it seemed clear that Xbox was committed to staying in the console space.
Now, however, new rumors have surfaced suggesting that, due to ongoing challenges, Xbox may be reconsidering its plans and could potentially abandon its next-gen console altogether.
Insider Reveals Xbox’s Plan To Potentially Exit The Console Market
SneakersSO, a reliable insider with a strong track record, recently sparked a major debate. Posting on NeoGAF, one of the most well-known gaming forums, the insider claimed that another significant wave of layoffs is expected in Q1 2026.
Without going into too much detail, not long after the last round of layoffs (next one should be coming in Q1 26 btw – and its going to be just as massive as the last one).
– SneakersSO
The insider also revealed that Microsoft’s plans for the next Xbox are becoming uncertain. According to many leaks and rumors, the console was set to release in 2026. Despite this, insiders say Microsoft now appears unsure about the hardware.
SneakersSO further claims that when a company is preparing to release a console, there are clear signs and steps to follow. However, none of these are happening at Xbox, and some things that were once guaranteed have been either scrapped or delayed.
Concrete plans for actual MS Xbox HW went from being definitive, to up in the air, which was really startling given that this thing was meant to be out relatively soon.
– SneakersSO
It is worth noting that, while all of this is based on a rumor and nothing confirmed by Microsoft per se, the source is quite credible. SneakersSO heard some details from Tom Warren of The Verge, another highly credible insider.
While the source is reliable, I highly doubt Microsoft would be exiting the console market by canceling the upcoming Xbox. That would just give Sony way too much freedom, and there would of course be consequences for that.
The Next-Gen Xbox Is In Development
Officially, we know that the next-gen Xbox console is in development. Microsoft has not confirmed any intent to exit the hardware market, so let’s not jump to conclusions. The console has been in development for quite a long time, which means the gaming giant has already spent a lot of money on it.
Developing a next-generation console is not easy and requires significant resources. So, if it was almost ready to launch, the decision to cancel it does not make much sense to me. Microsoft has seen strong profits recently thanks to its multiplatform strategy.
Even Game Pass reached a new record in profits. However, the gaming giant has lost a lot of money due to its new strategy of putting Call of Duty on Game Pass. According to a recent report, it has lost $300 million in sales, which is groundbreaking.
Due to the loss in sales, Microsoft increased the price of Game Pass Ultimate, which may have been a bad decision. Many users rushed to cancel their subscriptions after hearing the news. Looking at all this, the higher-ups may be considering changing strategies. However, canceling something that is near release does not seem like a solid idea to me.
Back in 2004, Sarah Bond, along with Phil Spencer and Matt Booty, revealed in an official podcast that Microsoft’s gaming division, Xbox, is aiming for the largest technical leap ever seen in a generation while confirming the next-gen Xbox.
So, the gaming giant aims for the biggest technical leap with its next console. That is exactly why it seems strange that Xbox would be exiting the console market.
Next-Gen Xbox Is Likely To Be Released
Many fans are panicking that the gaming giant is exiting the hardware market. However, until it is officially confirmed, fans shouldn’t worry too much. It would be an absolute nightmare if that happened, because Sony would enjoy complete freedom. There would be no one to set the standards but Sony, unless Valve steps in and releases the highly anticipated, rumored home console.
That said, I would suggest not worrying about it. Just recently, Jez Corden, a reliable insider, claimed that plans for the next-gen Xbox are not canceled.
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.
– Jez Corden
He did say that currently the plans aren’t canceled, but due to recent demands from Amy Hood, the company has been crushed under the AI hype. So, it wouldn’t be surprising if it changes its plans.
Right now, fans probably don’t know what to believe. I would suggest not believing anything for now. With how fast this rumor spread, Microsoft is most likely to address it sooner or later.
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Obaid Ur Rehman is a lifelong gaming enthusiast with a deep passion for writing about video games. While he enjoys all genres, he specializes in RPGs and Soulslike titles. After tackling some of the toughest bosses, he often unwinds with a cozy game to relax. Outside of gaming, Obaid enjoys watching anime, bingeing TV series, or staying active at the gym.
