Recently, rumors surfaced online suggesting that Xbox might abandon hardware and focus solely on Xbox Cloud Gaming for accessing content. However, I can confirm through reliable sources that this is not accurate, at least for the time being.
UPDATE (Oct 5, 2025): Microsoft has reiterated our earlier findings, stating, “We are actively investing in our future first-party consoles and devices designed, engineered, and built by Xbox. For more details, please refer to our agreement announcement with AMD.”
Nonetheless, the phrase “at least for now” raises significant concern. What can we anticipate in the upcoming quarter? While Xbox Game Pass remains a crucial revenue driver, primarily benefiting Xbox consoles—which have the largest user base—Xbox Cloud Gaming comes with location restrictions and substantial operational costs.
Moreover, using similar technology, one could create personal “cloud” setups at home, allowing users to utilize their own electricity. This model doesn’t appear financially viable on paper. Nevertheless, this is the current state of affairs.
UPDATE: Microsoft has officially dismissed the rumors about exiting hardware, as stated earlier. The original claim stemmed from a recent 50% price increase for Xbox Game Pass Ultimate, which was presented in a way many considered inconsiderate. The idea that Xbox might be abandoning hardware is concerning, highlighting a disconnect between Microsoft and its audience’s expectations regarding gaming.
Continued Commitment to Hardware
Microsoft’s long-term partnership with AMD for next-gen Xbox hardware remains intact. I’ve consulted multiple trusted sources about Xbox’s hardware plans, and with Microsoft’s confirmation, there’s no indication of any changes on the horizon. The Xbox Series X|S production is ongoing, and new stock will continue to be distributed to retailers as usual.
Despite Microsoft’s assurance, skepticism lingers. The company has previously shown inconsistency, which has contributed to a lack of consumer confidence. Gaming, driven largely by sentiment and enjoyment, requires players to feel good about their chosen platform, but Microsoft is making this increasingly challenging.
