Microsoft Is Not Abandoning Xbox Console Hardware for Cloud Gaming

A viral claim circulating on social media alleges that Microsoft plans to discontinue its Xbox console division and make Xbox Cloud Gaming (xCloud) the company’s only platform. However, our verification finds this claim to be false.

Social Media Posts

Multiple social media posts claim that Microsoft will “eliminate its console division and go fully third-party,” implying that all future Xbox titles will be played exclusively through xCloud. Some posts further claim that the current Xbox Series S|X generation will be the last.

Source | Archive

Source | Archive

Fact Check

Microsoft’s Public Statements on Hardware Commitment

In response to rumors suggesting Microsoft might discontinue console hardware, the company issued a statement on October 5, 2025, saying: “We are actively investing in our future first-party consoles and devices designed, engineered and built by Xbox.” (Source)

In addition, there is an official statement on Microsoft’s own Xbox News site confirming continued investment in new hardware. In June 2025, Xbox announced:

“Xbox announced it is actively building its next-generation lineup across console, handheld, PC, cloud, and accessories. As part of this, Xbox unveiled that it has entered into a strategic, multi-year partnership with AMD to co-engineer silicon across a portfolio of devices, including future first-party consoles and cloud.”

This statement, alongside public remarks by Xbox President Sarah Bond and AMD CEO Lisa Su, directly confirms that Microsoft remains committed to developing new Xbox hardware as part of its next-generation plans. It clearly shows that the company continues to invest in both consoles and related devices as part of a multi-platform ecosystem. (Source)

Contrary to the notion of a hardware phase-out, the Xbox Series X and S remain in active production and are still being shipped to retailers. Microsoft has not publicly signaled any plans to discontinue them in the near term. (Source)

Hardware Roadmap Beyond Series X|S

The claim suggests that Xbox Series X/S will be the final physical consoles from Microsoft. Available evidence indicates otherwise. In June 2025, Xbox president Sarah Bond announced that Microsoft and AMD are working together on co-engineering silicon for a portfolio of devices, specifically mentioning next-generation Xbox consoles. Multiple gaming media outlets report that Microsoft’s next-generation console development continues. Microsoft appears to be exploring various hardware approaches, including potential hybrid and multi-device options that may differ from traditional console designs. Based on public statements and reported development activities, claims that the Series X/S will be Microsoft’s final hardware offering appear to be unsubstantiated. (Source: GameSpot, Thurrott.com)

Cloud Gaming as a Complement, Not a Replacement

According to the Verge, Microsoft’s strategy increasingly emphasizes cloud gaming, subscription services, and multi-device access, but not at the exclusion of hardware. Cloud streaming enhancements (e.g., ad-supported tier) are being rolled out to make access more flexible, while Xbox Cloud Gaming is positioned as a way to broaden reach by letting players access Xbox titles across multiple devices, rather than rendering consoles obsolete.

While Microsoft has expanded its publishing strategy to include some first-party games on non-Xbox platforms, the company states that hardware remains an important component in its gaming ecosystem. Microsoft’s approach appears to combine traditional console gaming with cloud services, rather than replacing one with the other entirely.

Conclusion

The claim that Microsoft intends to completely abandon Xbox consoles in favor of Xbox Cloud Gaming, rendering Series X/S the final hardware generation, is false. Microsoft has issued explicit, public statements confirming ongoing hardware investment. Current Xbox consoles remain in production and support. Planning for next-gen hardware is active, particularly through collaborations like AMD. And cloud gaming is being integrated as a complementary expansion, not as a wholesale replacement.

Sources:

Windows Central – “No, Xbox’s next-gen console hardware plans aren’t cancelled”

VGChartz – “Microsoft says we are actively investing in our future of first-party consoles”

The Express Tribune – “Xbox next-gen console confirmed as Microsoft shuts down exit rumors”

Xbox Newsroom – “Microsoft and AMD announce next-generation Xbox partnership”