Next Xbox Will Definitely Launch — Microsoft Dispels Rumors of Shutting Down Its Console Division

In recent hours rumors have circulated that Microsoft intends to abandon the console market to concentrate solely on cloud gaming. The company, however, moved quickly to publish an official response.

“We are actively investing in the future of our consoles and in devices designed and built by Xbox,” the October 5, 2025 statement reads. It confirms that the next generation is already in development as part of a long-term strategic partnership with AMD.

The speculation surfaced amid fan unrest following a 50% price increase to Xbox Game Pass Ultimate, recent large-scale layoffs at Microsoft, and the apparent disappearance of consoles from some retailer catalogs.

Jez Corden of Windows Central, who has close ties to Xbox, said he spoke with reliable internal sources and was told the hardware lineup has neither been paused nor canceled. Additionally, new internal devices under the codename Kennan are reportedly underway, including Omni and Horseman models within the Xbox Ally series developed in collaboration with ASUS.

Microsoft also affirmed that production of the Xbox Series X|S is proceeding as planned and that fresh shipments will reach stores on schedule. The company says it remains committed to its hardware business while exploring new models, including an OEM licensing program for the Xbox brand planned for 2026.

Source: iXBT.games