The next-gen Xbox console is no longer a certainty, according to a new report from a credible insider. While Microsoft is believed to have spent years developing a successor to the Series X/S, the company is now reportedly reassessing key aspects of its gaming division—underperforming Xbox hardware among them.
These claims come from NeoGAF user SneakersSO, who has a small but consistent track record of Microsoft scoops. They were the first to break the story of Xbox games going multi-platform in late 2023, more than two months before the move was officially announced. The Verge's Tom Warren, a journalist with a reputation for reliable Microsoft coverage, even acknowledged SneakersSO during the October 5 episode of the XboxEra podcast (ep. No. 283), saying the leaker "knows a lot of what goes on internally."
History of Xbox Game Pass Price Hikes Explained
To the chagrin of subscribers, Xbox Game Pass is increasing its cost once again, and it's far from the first time the service has seen a price hike.
Microsoft Reportedly Paused Next-Gen Xbox Console Prep
SneakersSO has once again taken to the NeoGAF boards on October 4, offering some new alleged details about the recent happenings at Microsoft. The insider acknowledged the recent report of the Call of Duty Xbox Game Pass bet costing Microsoft $300 million, saying it caused significant uncertainty at the tech giant. While some staffers were allegedly told a new Xbox console would materialize as early as 2026, this is no longer a certainty, with internal confidence in the project said to be collapsing. That's at least in part due to Microsoft recently pausing its next-gen Xbox console prep work, as per the same source.
More Xbox Game Pass Price Hikes Are Reportedly on the Cards
The insider added that Microsoft's long-term strategy will shift even further away from dedicated Xbox hardware toward a business model focused on software and services. "The future of Xbox is software publishing," they said, claiming that the move will see the company double down on its most profitable IPs while simultaneously transitioning Game Pass into a "point of entry subscription" for Xbox Cloud Gaming. The controversial Xbox Game Pass price hike from early October 2025 may not be the last such adjustment in the foreseeable future, with SneakersSO claiming Microsoft "will continue to drive its price tag higher."
The recently announced ROG Xbox Ally line of handhelds may indicate how Microsoft plans to approach gaming hardware going forward—by licensing its brand to OEMs instead of investing heavily in first-party system development. However, this strategy would still depend on at least one OEM being willing to make a significant commitment to the Xbox brand at a time when its public image appears to be declining.
The future of Xbox is software publishing.
Leaked documents from Microsoft’s legal battle with the FTC over the Activision Blizzard acquisition suggest that development of the Series X/S successor began in the early 2020s. Later reports indicated that the next-gen Xbox console pivoted to a PC with a TV-friendly shell in a bid to make it easier for developers to support it.
- Brand
- Microsoft
- Original Release Date
- November 10, 2020
- Original MSRP (USD)
- $499
- Operating System
- Proprietary (Windows-based)
- Processor
- Custom AMD 8-core Zen 2 3.8 GHz
- Resolution
- 720p - 4K UHD
Source: XboxEra