Recent speculation suggests Microsoft’s Xbox division may undergo a more radical transformation than previously assumed, extending beyond its recent Game Pass pricing adjustments. A new leak hints at a potential exit from console manufacturing entirely.

Reliable insider SneakersSO, known for accurate Xbox strategy reveals, indicated on NeoGAF that plans for next-gen Xbox hardware have become uncertain despite prior timelines targeting a 2026 production start. This apparent hesitation clashes with Microsoft’s earlier promises of delivering an unprecedented technical leap in hardware capabilities for future generations.

According to the leak, Microsoft appears increasingly focused on prioritizing software distribution over hardware. The strategy reportedly emphasizes major franchises like Call of Duty, World of Warcraft, and Forza Horizon, alongside expanding xCloud streaming access. This shift aligns with Game Pass price restructuring and potential further increases as cloud services become Xbox’s primary platform.

If accurate, this pivot mirrors SEGA’s historic transition from console maker to third-party publisher. However, abandoning hardware could alienate loyal fans, jeopardize backward compatibility features, and contradict recent partnerships like Microsoft’s multi-year AMD agreement for developing next-gen gaming devices. While renegotiations remain possible, such a reversal would mark a dramatic departure from Xbox’s public roadmap.

Credibility for these claims gained traction when The Verge’s Tom Warren validated SneakersSO’s insider knowledge during a podcast appearance: “He knows a lot of what goes on internally… I don’t think he’s a bad source.”

How would Xbox enthusiasts respond to this scenario? Share your perspective in the poll below and discussion threads.

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