Microsoft has responded to reports that the next-generation Xbox console may be canceled. Rumors have been circulating throughout the weekend that a variety of factors may lead to Microsoft canceling the next-gen Xbox console, and the company has officially come forward with a statement.
On October 4, NeoGAF user SneakersSO, who has a history of providing Microsoft insider information, took to the NeoGAF message boards to provide alleged details about what’s going on at Microsoft. SneakersSO claims that the announcement of Call of Duty on Xbox Game Pass cost the company millions of dollars and has put the next-gen console plans “up in the air.” Some staff members were allegedly told that the next-gen console would need to be ready as early as 2026. SneakersSO also states that Xbox will be focusing more on software in the future.
Microsoft Confirms Multi-Year Partnership to Power Its Next-Generation Xbox
Microsoft announces a multi-year partnership between Xbox and AMD for the next-generation of Xbox, including new consoles and handhelds.
Microsoft Provides Statement About First-Party Consoles
Microsoft provided a statement on October 5 that it’s still investing in the future of its first-party console. “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.” Microsoft announced in June 2025 that Xbox and AMD entered a multi-year partnership, with AMD powering the next-generation Xbox console. Microsoft hopes that the partnership will improve the player experience by bringing improved visuals and advanced graphics.
The statement comes after a few weeks of Xbox announcements that haven’t been sitting well with gamers. On October 1, Xbox announced a price increase for Xbox Game Pass, with the Ultimate Edition increasing by 50% to $29.99 per month for access to day-one games and online multiplayer. Within hours of the announcement, Xbox users crashed the website attempting to cancel their subscriptions. Players then began to notice ads on their Xbox home screens for Game Pass in an effort to win them back. While it’s not the first time Xbox has raised its Game Pass prices, it comes on the heels of price increases for the Xbox Series X and S consoles, along with the upcoming Xbox ROG Ally X being priced at $999 when it launches on October 16.
Costco's removal of Xbox consoles from its stores and websites globally also stirred rumors about the next-gen console's prospects. Costco stated that the move was “a business decision” and that the stores would no longer carry Xbox consoles moving forward. SneakersSO also stated that Costco is just the first of other possible stores that may remove the current Xbox consoles from shelves.
- Date Founded
- April 4, 1975
- Headquarters
- Redmond, Washington, United States
- CEO
- Satya Nadella
- Subsidiaries
- activision blizzard, Microsoft Studios, Mojang Studios, Microsoft Game Studios, Xbox Game Studios
- Consoles
- Xbox, Xbox One, Xbox 360, Xbox One X, Xbox Series X, Xbox Series X|S
- Services
- Xbox Game Pass