Microsoft may cancel next Xbox console production

Microsoft may abandon plans to manufacture its next Xbox console and transition to a software-focused gaming strategy, according to industry leaker SneakersSO. The company reportedly shifted from concrete hardware development plans to uncertainty about production scheduled to begin in 2026 for a 2027 launch. Microsoft would focus on profitable franchises such as Call of Duty, World of Warcraft, Minecraft, Candy Crush, and Forza Horizon while expanding cloud gaming and raising Game Pass subscription prices. The strategy would involve releasing titles across multiple platforms rather than exclusive to Xbox hardware.

The Verge's Tom Warren confirmed on the Xbox Era podcast that SneakersSO possesses credible knowledge of Microsoft's internal gaming plans. Microsoft announced a 50 percent Game Pass price increase last week and signed a multi-year partnership with AMD in recent months to develop next-generation gaming devices. Xbox President Sarah Bond previously promised fans the biggest technical advancement between console generations. Abandoning console production would likely upset Xbox customers who have accumulated game libraries across multiple hardware generations through backward compatibility.
 

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