Despite rumors to the contrary, the Redmond-based company has openly stated that the Xbox brand will not abandon the hardware market.

Microsoft has made it clear that, despite poor Xbox Series sales, it has no intention of leaving the hardware business. Rumors had suggested that the company might pivot toward cloud gaming and PC-style hardware, such as the upcoming Xbox ROG Ally handheld PC. However, Microsoft confirmed that it is actively investing in future consoles and devices designed, developed, and manufactured under the Xbox brand.

This statement comes in response to alleged insider reports claiming that Xbox’s hardware future was uncertain. The rumor stemmed from the brand’s ongoing public crisis and the apparent decline of its console business. Xbox Series units are underperforming, major studios are closing, Game Pass appears to be losing momentum, subscription prices are rising, and there’s an overall shift toward multiplatform releases. The same-day release of PC (and some PlayStation 5) titles, PC Game Pass, the “This is an Xbox” slogan, and the Windows-based Xbox ROG Ally all contribute to this perception.

There are legitimate concerns about the future of Xbox, as it’s tied to the fate of several major game studios. Microsoft has publicly reaffirmed its commitment to hardware as part of that future, including through a partnership deal with AMD signed this summer. However, Xbox’s instability and Microsoft’s lack of transparency do little to inspire confidence. The company’s evolving definition of “console” may also diverge from its traditional meaning. Is the Xbox ROG Ally X considered a console? What if the next-generation Xbox platform turns out to be a Windows-based PC — an “Xbox Steam Machine,” essentially?

It’s also possible that plans will shift or certain projects will be canceled. Windows Central, citing anonymous sources, reported that Microsoft had scrapped an internally developed handheld project (unlike the Asus-collaborated Ally) as well as a planned cloud console. Confidence in Xbox is currently at an all-time low, which is worrying since much of the gaming industry — particularly in North America’s AAA segment — depends heavily on the brand’s stability and growth.

Source: PCGamer, Windows Central