Amid Cancellation Rumors, Microsoft Reaffirms Plans for Next-Gen Xbox Console
Last week, Microsoft announced its plans to increase Game Pass subscription prices. This, as expected, led to the online community reacting pretty negatively to the news.
However, with news of price hikes and retailers beginning to pull Xbox consoles off their shelves, a rumor started gaining traction, suggesting that the company had canceled its plans for its next-generation Xbox.
Well, turns out that rumor isn’t true, as Microsoft has released a statement confirming that plans are still on.
Xbox Plans With AMD for a Next-Gen Xbox Are Still Happening
In a statement issued to Windows Central, Microsoft has confirmed that it is still “actively” investing in the future of first-party consoles, referring to its previous statement from June 2025, in which it struck a deal with AMD to develop its next-gen console.
Per the 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.”
For those who missed that announcement, here’s the video where Sarah Bond, the President of Xbox, announced the AMD partnership.
“At Xbox our vision is for you to play the games you want, with the people you want, anywhere you want…That’s why we’re investing in our next-generation hardware line up, across console, handheld, PC, cloud, and accessories.
I am thrilled to share we’ve established a strategic, multi-year partnership with AMD to co-engineer silicon across a portfolio of devices, including our next-generation Xbox consoles — in your living room, and in your hands.”
As with any rumor, they should always be taken with a grain of salt, no matter how reliable that source may be. Of course, it doesn’t help that this rumor was fueled by the price increases of Game Pass and Consoles, as well as some retailers, such as Costco, pulling the consoles off their shelves. It’s no surprise that the rumor caught on so quickly.
In related Xbox news, the company is also reportedly planning to launch a free Xbox Cloud Gaming tier subscription that is ad-supported and will allow a specific amount of time each month to stream games for free. It’s supposedly launching a public test soon,
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