For years, the console war has been a two-horse race, but a seismic shift may be on the horizon. Microsoft, a pillar of the gaming industry, is facing a crisis of confidence—not just from players, but from its own retail partners and, according to a new insider report, from within its own walls. The future of Xbox hardware, once a guaranteed part of the gaming landscape, is now being described as "up in the air."
This startling claim comes from known leaker SneakersSO, who previously predicted Microsoft's ongoing pivot to a multi-platform publishing strategy. His latest revelations, shared on the NeoGAF forums, suggest that concrete plans for new Xbox hardware have been thrown into disarray following recent price increases and tepid market response.
From "Definitive" to "Up in the Air": The Inside Scoop
The gaming community was set abuzz when a leaked email from Xbox President Sarah Bond in 2024 promised a "next-generation hardware" roadmap that had fans dreaming of a powerful Series X successor and a potential Xbox handheld. This vision seemed to be confirmed when Microsoft announced a strategic partnership with AMD in June, a move that all but shouted a new console was inevitable.
However, according to SneakersSO, the winds have changed. He explains that “suddenly, really concrete plans for actual MS Xbox HW went from being definitive, to up in the air.” The insider believes that projects which were once actively progressing have now been shelved or radically reconsidered.
This doesn't mean Microsoft is completely abandoning hardware. The company may still collaborate with third-party manufacturers, much like the ASUS-made "ROG Xbox Ally" concept that has been circulating. But the focus, it seems, is decisively shifting away from competing directly with Sony on a pure hardware level. Instead, Microsoft's grand strategy appears to be consolidating around its software and services: publishing major titles on rival consoles, and pushing its subscription crown jewel, Xbox Game Pass.
This strategic pivot was further highlighted in a recent sweeping overhaul of Xbox Game Pass plans and pricing, which saw the price of Ultimate tier increase significantly.
A Retail Exodus: Costco's Move Signals a Larger Problem
The insider's claims gain more weight when examining the behavior of major retailers. SneakersSO points to Costco's decision to stop carrying Xbox hardware as a significant bellwether, not merely a temporary inventory adjustment.
The logic is straightforward. With Microsoft implementing price increases on five-year-old consoles like the Xbox Series X and S, the value proposition for consumers is crumbling. Why would a budget-conscious shopper at a discount chain pay more for aging technology? This erodes retailer confidence. If current-gen consoles are a hard sell at a higher price, stocking even more expensive next-generation hardware becomes a massive financial risk.
This creates a vicious cycle. Without strong retail support, launching a new console becomes exponentially more difficult. While there's no evidence that Sony has delayed the PS6, the entire industry is wary of economic pressures and potential tariffs that could make future consoles a tough sell to a financially squeezed audience.
A Fulfilled Prophecy? Following the Advice of Former Execs
While SneakersSO's track record is limited and warrants a degree of healthy skepticism, his claims align with sentiments expressed by former Microsoft executives. If he is correct, the company would simply be following a path that others have long advocated.
Laura Fryer, a former studio head at Microsoft, was one of several ex-employees to publicly declare Xbox hardware dead. In a detailed interview, she argued that without a strong slate of exclusive games, a new Xbox console serves no distinct purpose. Why invest billions in hardware R&D and manufacturing when your most valuable assets—games like Call of Duty, Starfield, and Minecraft—can be sold directly to the massive player bases on PlayStation and Nintendo?
The monumental $69 billion acquisition of Activision Blizzard further cements this theory. It was not a move to bolster Xbox console exclusives, but a strategic power play to own immensely valuable IP that can be monetized across every possible platform, cementing Microsoft's future not as a hardware maker, but as the world's preeminent cross-platform publisher.
The recent price hikes, the retail skepticism, and the strategic acquisitions all paint a coherent picture. The familiar green box under our TVs may not have a successor. The future of Xbox might not be a console at all, but a launcher, a subscription, and a logo on the box of the next Call of Duty you buy for your PlayStation.
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