This week has been a roller-coaster ride for Xbox fans, with massive changes to Xbox Game Pass tiers, the announcement of free ad-supported streaming games, and more. But fans of Xbox consoles will have to brace for another potential blow, with a reputable insider source leaking details about the console’s future.
According to insider SneakersSO on NeoGaf, Xbox may be ditching consoles for good and “the future of Xbox is software publishing, with a significantly honed-in focus on profitable IPs.”
The leak also suggests that there will be another massive round of layoffs in Q1 of 2026, though it’s important to note that Microsoft has not commented on any of these rumors as of this writing.
A report from Windows Central has clarified and seemingly confirmed that development on Xbox’s next-gen console has not changed as SneakerSO suggests in the NeoGaf post.
We May Never See Another Xbox Console Again
Insider Leak Suggests Next Xbox Console Is Having Development Woes
According to SneakerSO, who is a reputable insider source that has been accurate with Xbox leaks in the past, there may never be another Xbox console after the current-gen versions we have now. Microsoft appears to be shifting to a software-based model, and the leak suggests the development of the next console is not looking good.
“Really concrete plans for actual MS Xbox [hardware] went from being definitive, to up in the air, which was really startling,” SneakerSO says, highlighting the fact that the next console was supposed to be launching relatively soon.
SneakerSO also points out that Microsoft will be focusing on cloud gaming as a primary Xbox platform, “transitioning Game Pass into basically becoming the point of entry subscription,” while also releasing software on any device with a marketplace.
However, despite these claims, it’s worth noting that Xbox President Sarah Bond stated in a video (via YouTube) earlier this year that there is a multi-year deal with AMD “to co-engineer silicon across a portfolio of devices, including our next-generation Xbox consoles.” It’s unclear if the above leak takes this fact into account, or if something has changed behind the scenes since that earlier announcement.
The rumors track considering the recent move earlier this week to restructure Game Pass. Further, SneakerSO points out that the price tag of subscription services are likely to continue to increase over time, as that’s a core driving force of Microsoft’s new approach.
It’s Been A Rough Week For Xbox Fans
Xbox News Has Been Bleak Lately
Ultimately, it has been a really rough week for Xbox fans, with these rumors being the icing on the cake. With the absurd price increases to Game Pass subscriptions, players started canceling their memberships in droves out of frustration.
This week is the culmination of an overall troublesome year for Xbox and Microsoft, with a massive round of layoffs happening earlier in 2025 despite reporting record profits. These are only a few of the major issues that Xbox and MS have faced lately that are leaving a seriously bad taste in players’ mouths, and if the above rumors are true, the future of Xbox is looking very bleak.
While the above leaks are unverified, they do suggest a troubling vision of the future of Xbox. Without a next-gen console in the works, and unless there’s a massive uptick in Game Pass and subscription service value, Xbox isn’t giving players very many reasons to stick around.