Another rumor surrounding Microsoft has stirred up the gaming world, but this time, the company didn’t stay silent for long — they were quick to respond. Speculation suggests that the Redmond giant might be preparing a radical shift in its Xbox strategy, potentially moving away from console manufacturing altogether. However, Microsoft insists that its hardware future is still very much alive.

Microsoft has once again become a hot topic in the gaming industry, as new reports hint that the company’s long-term plans could be far more dramatic than anyone expected. The rumor originates from a well-known insider, SneakersSO, who previously leaked Xbox’s intention to bring its exclusive games to rival platforms. Posting on NeoGAF, SneakersSO claimed that plans for the next Xbox hardware have gone from being “very concrete” to “uncertain,” despite the initial goal of starting production in 2026 and launching in 2027.

“The future of Xbox is software publishing, with a significantly honed-in focus on profitable IPs such as Call of Duty, World of Warcraft, Minecraft, Candy Crush, and Forza Horizon. Cloud gaming will become the home of the Xbox ecosystem, and Game Pass will evolve into a subscription primarily granting access to Xbox Cloud Gaming. Prices will continue to rise, and Microsoft intends to release its software on any device with a marketplace and users willing to pay,” the leaker stated.

According to the leak, Microsoft could follow SEGA’s path by exiting the console market altogether. While Xbox hardware sales have been declining for years, the company has consistently promised fans that a new high-performance console is in the works — even calling it the biggest technological leap between console generations to date. Just four months ago, Microsoft signed a multi-year partnership with AMD to produce next-generation consoles, handhelds, and cloud-based hardware. Renegotiating that deal without consoles is theoretically possible, but such a decision would likely anger fans, particularly those who fear losing access to their extensive backward-compatible game libraries.

Adding credibility to the leak, Tom Warren of The Verge stated on the Xbox Era podcast that SneakersSO indeed has reliable insight into Microsoft’s internal plans. Warren said the source is highly knowledgeable about ongoing projects and likely trustworthy. Microsoft itself responded to the rumor with a brief statement to Windows Central: “We are actively investing in our future first-party consoles and devices designed, engineered, and built by Xbox. For more details, the community can revisit our announcement regarding the AMD partnership.”

Despite the company’s denial, many are left wondering whether Microsoft is being completely transparent about its long-term vision. Could this truly be the beginning of the end for Xbox hardware as we know it — or is the company preparing to surprise the industry once again?

Source: WCCFTech, NeoGAF, Windows Central