Microsoft has issued a statement insisting it remains committed to Xbox consoles after a fresh rumor that it planned to exit the hardware business.
The rumor emerged from an alleged insider who claimed Microsoft’s Xbox hardware plans had become less sure and that the future of Xbox was software publishing — a common suggestion on social media and on forums.
But Microsoft issued a statement over the weekend countering that rumor, telling 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 agreement announcement with AMD.”
Xbox Games Series Tier List
Xbox Games Series Tier List
The rumor and Microsoft’s statement came after a bruising week in which the company was heavily criticized for raising the price for Xbox Game Pass Ultimate from $19.99 a month to $29.99 a month. Microsoft also ditched the discount on DLC for Game Pass subscribers in favor of increased Rewards points.
Meanwhile, Bloomberg reported that Microsoft’s decision to release Call of Duty as a day one Game Pass title has cost it $300 million in lost sales. That’s because fans who would have bought Call of Duty under normal circumstances on PC or Xbox opted to play it through the Game Pass subscription instead. Call of Duty: Black Ops 7 is set to launch as a day one Game Pass title this November, but subscribers now won’t get 10% off COD Points or the BlackCell battle pass upgrade.
Microsoft’s console hardware plans are under intense scrutiny following its seemingly successful multiplatform push for its video games and flagging sales of the Xbox Series X and S. But in June, Microsoft announced a partnership with AMD to power the next generation of Xbox, including its first-party future Xbox consoles. It was a deal seen as a rubber stamp for the next-generation of Xbox, at least.
Microsoft failed to detail its plans, but did promise “next-level performance, cutting-edge graphics, breakthrough gameplay, and unmatched compatibility.” It also said everything it’s working on will be “fully compatible” with users’ existing Xbox game library.
“We’ve established a strategic, multi-year agreement with AMD to co-engineer silicon across a portfolio of devices, including our next-generation Xbox consoles,” Microsoft said.
“Together, we’re delivering deeper visual quality, immersive gameplay, and AI-powered experiences – grounded in a platform designed for players, not tied to a single store or device, and fully compatible with your existing Xbox game library.”
In a video, Xbox president Sarah Bond said Microsoft was investing in “our next-generation hardware lineup across console, handheld, PC, cloud, and accessories.”
But do those plans also include a first-party Xbox handheld console? Microsoft’s gaming boss Phil Spencer has confirmed his interest in such a device, but subsequent reports have suggested the idea has been sidelined. We asked Jason Ronald, Microsoft’s vice president of Xbox gaming devices and ecosystem, about Microsoft’s internal plans to make a first-party Xbox handheld back in August.
The cost of being an Xbox fan has been a hot topic in recent months. After announcing a jump to $80 for its games due out this holiday, Microsoft back-tracked to stick with $70 for the likes of The Outer Worlds 2. And just last month Microsoft raised the price of Xbox consoles in the U.S. “due to changes in the macroeconomic environment.”
Microsoft similarly raised eyebrows when it confirmed a $999.99 price tag for the upcoming ROG Xbox Ally X handheld, and $599.99 for the ROG Xbox Ally.
Photo by INA FASSBENDER/AFP via Getty Images.
Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.
