Big news for gamers! Microsoft has addressed the chatter about the new Xbox console potentially being canceled. Recently, rumors flew across social media suggesting that various issues could lead to the cancellation of the next-gen Xbox, and Microsoft decided to clarify the situation.

On October 4, a user named SneakersSO from NeoGAF, known for leaking insider info about Microsoft, hinted that the recent announcement for Call of Duty on Xbox Game Pass cost the company a fortune. Because of this, the timeline for the next-gen console seems uncertain, with some sources claiming it might not hit shelves until 2026. What’s even more interesting is that Xbox is planning to focus more on software development in the near future.
Microsoft’s Official Statement
On October 5, Microsoft reassured fans that they’re still putting money into creating their next-gen hardware. The company emphasized, “We are actively investing in our future first-party consoles and devices designed, engineered, and built by Xbox.” This follows their deal with AMD, announced in June 2025, promising better graphics and player experiences in the next console.

However, not all news has been positive. Xbox recently raised prices on Xbox Game Pass subscriptions—up 50% for the Ultimate Edition, which now costs $29.99 monthly. This led to a lot of frustration among users to the point where they flooded Xbox’s website attempting to cancel their subscriptions. Additionally, many noticed advertisements for Game Pass appearing on their Xbox home screens.

In other news, Costco’s decision to stop carrying Xbox consoles in its stores and online caused whispers of trouble for the next-gen console. Costco referred to this as a “business decision,” implying it could be a sign of other retailers taking similar actions.