The new Xbox may not be released: an insider revealed global changes in Microsoft Gaming strategy

It is no secret that Microsoft's gaming division is no longer betting on Xbox consoles and is increasingly positioning itself as a multi-platform publisher with a focus on its own digital ecosystem.

There was previously speculation that the next Xbox could be the last console of the American corporation, but much indicates that it may not be released either.

What is known

According to insider SneakersSO from the NeoGAF forum, Microsoft may abandon the release of a new Xbox console, despite previous statements. After purchasing Activision Blizzard for $70 billion, the company has tightened control over its gaming division and requires quicker returns on investments.

The insider disclosed the following points:

• the addition of Call of Duty: Black Ops 6 to Game Pass did not provide the expected growth in the service audience;
• Microsoft has begun large-scale layoffs, abandoned exclusives, and is shutting down unpromising Xbox Game Studios projects;
• the cost of the Xbox Game Pass subscription has risen sharply, and the traditional model of “selling consoles at a loss” is no longer acceptable to the corporation.

In connection with this, Microsoft is turning Xbox into a publishing platform, focusing on profitable franchises: Call of Duty, Minecraft, Forza Horizon, Candy Crush, and emphasizing cloud gaming through Xbox Cloud Gaming, which, we remind you, may receive a free ad-supported version. Games will be released on any devices where interested buyers exist.

Currently, the development of the new Xbox console is on pause, but the company may grant a license for its platform to third-party manufacturers, as has already happened with ASUS ROG Ally.

Unfortunately, another wave of layoffs is coming to Xbox, expected to begin in early 2026.

Source: Resetera