Microsoft denies rumors it’s abandoning Xbox hardware

Microsoft has officially denied claims that it is halting work on the next generation of Xbox consoles.

In a statement, the company confirmed that hardware development continues and dismissed speculation about a full shift to cloud gaming as unfounded.

The rumors, which spread across forums and social media, suggested Microsoft was ending its console line in favor of Xbox Cloud Gaming, sparking concern among fans.

According to Windows Central, while internal discussions about long-term strategy are indeed taking place, production of Xbox Series X and S consoles continues as normal, with fresh stock reaching retailers without disruption.

Sources also told that Microsoft is actively developing a new generation of devices under the codename Kennan. The lineup reportedly includes projects Omni (Xbox Ally) and Horseman (Xbox Ally X), built in partnership with AMD. The companies are working together on custom processors for the future consoles.

Xbox president Sarah Bond and AMD CEO Lisa Su have both recently reaffirmed their collaboration and ongoing work on semiconductor solutions tailored for next generation gaming hardware.

The confusion traces back to a gaming forum, where one user’s remark that “hardware plans were up in the air” was later misinterpreted as Microsoft canceling its console roadmap entirely.

Microsoft stresses that Xbox remains a cornerstone of its gaming ecosystem, with cloud services positioned as a complement rather than a replacement to physical consoles.