Xbox next-gen console confirmed as Microsoft shuts down exit rumors

Microsoft has denied rumors of canceling Xbox hardware, confirming next-gen consoles are still in development

Microsoft has officially denied widespread rumors claiming it plans to end Xbox console production and move entirely to cloud gaming.

The company confirmed that new next-generation Xbox consoles are still in development and that its commitment to console hardware remains strong.

In a statement released on October 5, 2025, Microsoft said, “We are actively investing in our future first-party consoles and devices designed, engineered and built by Xbox.” This announcement directly addresses speculation that Xbox’s hardware division was being phased out in favor of Xbox Cloud Gaming.

According to reports from Windows Central, Microsoft’s multi-year partnership with AMD continues to drive next-gen development. The collaboration includes custom AMD silicon designed to power upcoming Xbox devices, ensuring major performance upgrades for future console generations.

The rumors gained momentum after Microsoft’s controversial 50 percent price hike on Xbox Game Pass Ultimate, which many fans saw as a signal that the company was shifting focus toward cloud-based services. However, Microsoft confirmed that Xbox Series X|S production is ongoing, with new consoles regularly shipping to retailers worldwide.

Sources also revealed that development is underway on additional hardware projects, including devices reportedly codenamed “Xbox Ally.” These projects are expected to expand Xbox’s hardware ecosystem while maintaining strong integration with its software and cloud services.

Although some uncertainty remains due to Microsoft’s inconsistent messaging and recent internal restructuring, the tech giant’s renewed statements make one thing clear: Xbox consoles are here to stay. With AMD-powered innovation and active development continuing, the future of Xbox hardware appears secure for now.