Plans to build next-gen Xbox hardware are now “up in the air”, as more retail stores will soon be backing out from selling Xbox consoles.
Known insider SneakersSO, who previously leaked accurate information about Xbox’s third-party strategy, took to the NeoGAF forums to share some rumblings that recently came from Microsoft regarding the future of its gaming division. According to the leaker, following the most recent wave of layoffs at Microsoft, internal discussions have taken a surprising turn, one that leaves the company’s next-gen Xbox hardware plans “up in the air”.
In their post, SneakersSO claimed that while Xbox leadership initially targeted a 2026 release window for new hardware, “really concrete plans for actual [Microsoft] Xbox [hardware] went from being definitive, to up in the air.” As per the insider, critical steps typically required in the lead up to a new console generation launch weren’t being met, and that lots of “sure things” started getting pushed, suggesting that internal alignment for the hardware roadmap has disappeared.
The insider also pointed towards Costco’s recent decision to stop selling Xbox consoles, and claimed that more major retailers are expected to follow suit. “The Costco retailer pulling Xbox, and apparently they are one of many that we’ll learn about soon, told me all I needed to know,” they said.
The Verge’s senior editor Tom Warren acknowledged that SneakersSO is a legitimate insider during the latest XboxEra podcast, saying, “I will say he knows a lot of what goes on internally, I don’t think he’s a bad source.”
If SneakersSO’s information is accurate, Microsoft’s gaming strategy will undoubtedly pivot entirely toward software publishing and services. The insider mentioned that the company will double down on its most profitable IPs, including Call of Duty, World of Warcraft, Minecraft, Candy Crush, and Forza Horizon, while positioning its future around cloud gaming and the Xbox Game Pass ecosystem. According to them, the subscription service will effectively become the gateway to xCloud, with further price hikes to come in the future.
