The dangerous information retains rolling in for Xbox avid gamers. A brand new report means that Microsoft could possibly be abandoning its subsequent console.

A really dependable insider claims that Microsoft is planning some very “intense” adjustments for the Xbox model, and we might see them come to fruition within the coming months. 

The primary change, sadly, will come within the type of one other spherical of layoffs heading into Q1 2026, and the corporate’s subsequent console era could by no means see the sunshine of day.

The insider continues by mentioning that Xbox’s future will focus solely on recreation publishing and can altogether ditch the {hardware} part, highlighting the top-performing IPs in its portfolio whereas now not contemplating the event of latest consoles. 

Whereas that is solely a rumor and must be met with skepticism, The Verge’s Tom Warren added gasoline to the fireplace when he mentioned throughout a current episode of the XboxEra podcast that the supply “is aware of quite a lot of what goes on internally.”

In one other submit on NeoGAF, the dependable supply, who goes by SneakersSO and likewise occurred to trace at Microsoft’s shift to third-party improvement earlier than it occurred, broke down the complete rumor relating to the way forward for Xbox’s {hardware} and the way the corporate shall be shifting ahead. 

Per NeoGAF: 

With out going into an excessive amount of element, not lengthy after the final spherical of layoffs (subsequent one must be coming in Q1 26 btw – and its going to be simply as huge because the final one), some rumblings out of Xbox beginning popping out that had been slightly exhausting to consider.

The ramifications of the CoD GP gambit not understanding had been simply beginning to get correctly measured, however the factor that basically caught out to me was that abruptly, actually concrete plans for precise MS Xbox HW went from being definitive, to up within the air, which was actually startling provided that this factor was meant to be out comparatively quickly. It was a type of conditions the place, regardless of people being informed ‘hey, we wanna pull the set off on this in 2026’, the steps you would want to absorb the lead as much as delivering a brand new console gen weren’t being met. Plenty of issues that had been ‘positive issues’ began getting pushed. The Costco retailer pulling Xbox, and apparently they’re one in every of many who we’ll find out about quickly, informed me all I wanted to know.

To sum it up: the way forward for Xbox is software program publishing, with a considerably honed-in deal with worthwhile IPs (CoD, WoW, Minecraft, Sweet Crush, Forza Horizon), Cloud gaming being the house of the ‘Xbox platform’, transititioning GamePass into mainly turning into the purpose of entry subscription for xCloud entry (which can proceed to drive its price ticket increased btw, they aren’t finished there simply but both), and releasing their software program on any machine that has a market and customers prepared to purchase their titles.

Possibly some OEM factor will take up the Xbox title, however given what’s clearly a collapse in favorable mindshare and religion in mentioned model, i’m not even positive a third celebration OEM is gonna wish to have an Xbox console by the point MS is finished with their reorienting of the division.

We Can Solely Hope This Information Isn’t True

We genuinely hope the information in regards to the layoffs doesn’t come to move, as a result of the online game business has been taking a big hit, and many individuals have misplaced their jobs over the previous a number of years.

However it simply looks as if that information is inevitable. As for Xbox’s shift to third-party, it seems to be a finished deal, and following the most recent information in regards to the Xbox Sport Cross Final worth hike, dropping cash on COD after bringing it to Sport Cross, and the way the Black Ops 7 beta is underperforming in comparison with Battlefield 6, it’s not sounding too good for Microsoft proper now.

You possibly can see reactions to the rumor under.