Microsoft has addressed reports suggesting that the upcoming Xbox console could be canceled. This speculation arose after various factors were rumored to affect Microsoft’s plans, prompting the company to issue an official statement.
On October 4, a NeoGAF user known as SneakersSO, noted for reliable insider information regarding Microsoft, posted on their forums about internal developments. According to SneakersSO, the unexpected costs stemming from the announcement of Call of Duty on Xbox Game Pass have thrown the next-gen console plans ‘up in the air.’ Allegedly, this has led to expectations that the next-gen console must be ready as early as 2026, with a shift toward prioritizing software in the future.
Microsoft Addresses First-Party Console Investments
On October 5, Microsoft released a statement asserting that it remains committed to investing in the future of its first-party consoles. They declared, “We are actively investing in our future first-party consoles and devices designed, engineered, and built by Xbox. For more information, the community is encouraged to refer back to our agreement announcement with AMD.” This announcement followed Microsoft’s partnership with AMD, initiated in June 2025, aimed at enhancing the gaming experience through advanced graphics and visuals.
The timing of this statement comes on the heels of recent Xbox announcements that contradicted consumer expectations, including a significant price rise for Xbox Game Pass. The Ultimate Edition saw a price hike of 50%, now costing $29.99 per month for immediate access to new games and online play. Shortly after this announcement, many Xbox users attempted to cancel their subscriptions, causing the cancellation page to crash. Gamers also observed advertisements promoting Game Pass on their home screens.
This price increase follows previous hikes for the Xbox Series X and S, coinciding with the launch of the Xbox ROG Ally X retailing at $999 on October 16.
Additionally, rumors intensified with Costco’s recent decision to stop selling Xbox consoles, attributed to a ‘business decision,’ indicating they would no longer stock Xbox devices moving forward. SneakersSO hinted this may only be the beginning, with additional stores potentially following suit in removing Xbox consoles from their shelves.
