Over the weekend, you may have seen that a rumour was doing the rounds suggesting Xbox's hardware plans were "up in the air" and that "the future of Xbox is software publishing" - something Microsoft has responded to in recent hours.
The rumour came from a source known as SneakersSO over on ResetEra. Here's a bit of what they had to say about the hardware side of things over at Team Xbox and Microsoft HQ:
"Without going into too much detail, not long after the last round of layoffs (next one should be coming in Q1 26 btw - and its going to be just as massive as the last one), some rumblings out of Xbox starting coming out that were a little hard to believe."
"The ramifications of the CoD GP gambit not working out were just starting to get properly measured, but the thing that really stuck out to me was that suddenly, really concrete plans for actual MS Xbox HW went from being definitive, to up in the air, which was really startling given that this thing was meant to be out relatively soon. It was one of those situations where, despite folks being told 'hey, we wanna pull the trigger on this in 2026', the steps you would need to take in the lead up to delivering a new console gen weren't being met. Lots of things that were 'sure things' started getting pushed. The Costco retailer pulling Xbox, and apparently they are one of many that we'll learn about soon, told me all I needed to know."
It should be highlighted that this initial post only mentioned "up in the air" rather than "cancelled", but people have been running with it on social media and it's snowballed into a rumour about a full-on cancellation.
However, following this, Windows Central reached out to some of their sources to try and verify the information, and came to the conclusion that Xbox's next-gen hardware plans are still in the works.
"So today, rumors began to swirl across the internet that Xbox is planning to exit hardware, and move entirely to Xbox Cloud Gaming as the primary way to access content. I can confirm via very trusted sources that this isn't true. At least for now."
"From what I've been told, the hardware plans are not even "up in the air," and remain firmly Xbox's path forward. Xbox Series X|S hardware production has not ceased, and new stock will go out to retailers at its usual cadence."
Better yet, Microsoft then contacted the outlet 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."
So, there you go! Microsoft has poured cold water on the rumour that its next-gen console(s) could be cancelled, but as highlighted by Windows Central, this situation highlights an undertone of uncertainty amongst Xbox fans right now.
Xbox has changed a lot as a brand over the past couple of years, and it feels like none of us really know what the future has in store for it. For now, we're just comforted that Microsoft is committed to investing in next-gen Xbox hardware.
We'll have to wait and see if anything else from that original rumour ends up becoming true or not...