The new Xbox console may not be released

An industrial insider under the nickname SneakersSO revealed disturbing details about the internal situation at Xbox after a wave of layoffs. According to him, The next major round of layoffs is expected as early as the first quarter of 2026.and he will no less tough, than the previous one. But the key changes affect more than just the staff— The very plans to release the next generation of Xbox consoles are under threat.

According to an insider, Specific developments for the new Xbox hardware were "frozen", despite the fact that the 2026 launch had previously seemed a done deal. Processes that should already be in full swing, suddenly stopped, and previously reliable partners, including Costco has discontinued its Xbox brand., which, according to SneakersSO, indicates a decline in trust in the platform on the part of retailers.

Microsoft's main bet is now transition to the publisher model, with a focus on profitable franchises sort of Call of Duty, World of Warcraft, Minecraft, Candy Crush и Forza HorizonXbox as a platform will exist in the cloud - via xCloud, Game Pass will become the entry point to cloud gaming subscriptions, With the price of the service will continue to riseIn the future, Microsoft may retain the Xbox name for OEM partner solutions, but the chances of seeing a full-fledged new console are rapidly decreasing.