Microsoft says it's still developing a new Xbox, despite cancellation rumors

New Xbox hardware is still on the way, for now

(Credit: DALL-E)

• ✋ Microsoft has quashed rumours that it is exiting the console hardware business

• 👉 A recent statement saw the company refer back to an agreement with AMD that announced AMD will power the next-gen Xbox consoles and more

• 💰 The news comes in the wake of the restructuring of Xbox Game Pass and its high price hikes

• 🙅‍♂️ Microsoft has previously confirmed it was working on a new Xbox

Microsoft has provided a statement to address the swirling rumours that we may have seen the last of first-party Xbox hardware.

As per a recent Windows Central report, Microsoft responded to rumours that it was planning to move entirely to Xbox Cloud Gaming and third-party publishing with the following statement:

“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.”

The rumours came after the aftermath of the Xbox Game Pass price hikes, which saw a restructuring of the tiers of the service and immense price rises, including a 50 percent increase for Game Pass Ultimate.

Microsoft had previously confirmed it was working on a new Xbox in November last year. However, Windows Central’s article notes its source that stated Microsoft will exit the console business was the same that confirmed the existence of the Xbox Series X|S several years ago. The source also reported on the co-branded Asus ROG Xbox Ally handhelds.

According to the article, Microsoft’s plans for hardware are no longer “up in the air” and that they are committed to future first-party options. Hardware production for the existing consoles also hasn’t ceased, as had been alleged in the past.

It remains to be seen where Microsoft may go in the future, but both Xbox President Sarah Bond and AMD CEO Dr. Lisa Su have reaffirmed the commitment between the two brands from a hardware perspective.

Up next: How Xbox Game Pass went from ‘the best deal in gaming’ to the worst

Reece Bithrey is a journalist with credits in Trusted Reviews, Digital Foundry, PC Gamer, TechRadar and more. He also has his own blog, UNTITLED and graduated from the University of Leeds with a degree in International History and Politics in 2023.