Rumors spread like wildfire today claiming that Microsoft is shutting down its Xbox hardware division — and that the future of Xbox would rely only on cloud gaming. Thankfully, that isn’t true… at least not yet.
But the fact that so many people believed it instantly shows a major trust issue between Xbox and its fans.
What Sparked the Rumor?
Posts began circulating online suggesting that Microsoft was abandoning Xbox consoles to focus entirely on Xbox Cloud Gaming. However, multiple reliable insiders have confirmed that this rumor is false — for now.
The confusion arose after Microsoft’s recent 50% price hike for Xbox Game Pass Ultimate, paired with vague corporate messaging that left fans frustrated. The company tried to justify the change by bundling in things like Fortnite Crew — but players weren’t convinced.
Microsoft Still Has Hardware Plans
Despite the chaos, Xbox is not exiting the hardware market.
In fact, Microsoft’s multi-year partnership with AMD for next-generation Xbox hardware is still active.
This partnership will power upcoming projects — including:
- The Xbox Series X|S successors
- The “Xbox Ally” handheld lineup (codenamed Kennan, including Omni and Horseman)
Trusted sources confirm that Xbox’s hardware production continues as usual, with new Series X|S stock still shipping to retailers.
Even AMD CEO Lisa Su and Xbox President Sarah Bond publicly stated this summer that they remain committed to future Xbox devices using custom AMD silicon.
Why the Rumor Feels Believable
The issue isn’t just misinformation — it’s credibility.
Over the past few years, Xbox has made several confusing moves:
- Mass layoffs across Xbox and Bethesda studios
- Game Pass restructuring and sudden price increases
- Mixed messaging about exclusive titles appearing on PlayStation
- Retailers like Costco reportedly pulling Xbox consoles from stores
All of this creates the impression that Microsoft doesn’t have a clear long-term vision for Xbox — leaving fans wondering what’s next.
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Game Pass: From “Best Value” to Backlash
For years, “Xbox Game Pass is the best value in gaming” was a beloved phrase among fans.
But now, that reputation is slipping.
Even though Game Pass still delivers incredible titles like:
- DOOM: The Dark Ages
- The Elder Scrolls: Oblivion Remake
- Expedition 33
- Blue Prince
…the 50% price hike for the premium tier that includes day-one releases has angered players.
Many see this as a betrayal, especially after Xbox executives boasted that Game Pass had become profitable and generated over $5 billion in revenue.
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The Trust Problem
Xbox fans don’t just want powerful consoles or cheap subscriptions — they want stability.
They want to believe that the brand they’ve supported for years has a clear future.
But right now, Microsoft’s actions seem inconsistent, driven more by short-term profits than by long-term fan loyalty.
As one industry analyst put it:
“Gaming is a business built on emotion — people need to feel good about where they play. And right now, Xbox is making that very hard.”
What’s Next for Xbox?
While Xbox hardware isn’t cancelled, fans remain skeptical. Microsoft says it’s still committed to new consoles and first-party games — but it must now rebuild trust.
With the gaming landscape changing rapidly, Xbox must strike a balance between innovation and consistency — or risk repeating the mistakes of 2013’s Xbox One era.
Bottom Line:
The next-gen Xbox hardware is still coming, powered by AMD and supported by Game Pass — but the brand’s credibility is hanging by a thread. If Microsoft wants to win back gamers, it must start communicating clearly and valuing loyalty over quarterly profits.
