Microsoft denies rumors of leaving the console market
Following speculation about an exit from the hardware market, the company points to its long-term silicon partnership with AMD.
2025 has not been an easy year for Xbox. It has been a series of months plagued by layoffs, project cancellations, and price increases for consoles and services such as Xbox Game Pass. And now, a new rumor has rocked the boat. Despite an alliance with Asus for the upcoming launch of the Xbox ROG Ally, rumors circulated on social media this weekend about Microsoft’s alleged plans to exit the console market and focus on third parties, something the company has already denied.
In a statement to Windows Central, Microsoft insists that it remains committed to Xbox consoles. “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.”
The agreement was announced this June, with Xbox President Sarah Bond and AMD CEO Lisa Su having already revealed last summer that the two companies were working together on the silicon that will power future devices. “We’ve established a strategic, multi-year agreement with AMD to co-engineer silicon across a portfolio of devices, including our next-generation Xbox consoles,” Microsoft said, “Together, we’re delivering deeper visual quality, immersive gameplay, and AI-powered experiences - grounded in a platform designed for players, not tied to a single store or device, and fully compatible with your existing Xbox game library.”
Between the cloud and hardware: an identity crisis
The text itself from Windows Central, the media outlet that originated the denial, reflects the dilemma facing the gaming division. On the one hand, Xbox Game Pass remains the main economic driver, but its success still depends on physical consoles, which have the largest user base. On the other hand, the commitment to the cloud and external devices has diluted the perception of a clear identity.
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The comparison with the Xbox One’s image crisis in 2013 is inevitable. At that time, the company also lost the trust of its community after erratic communication and unpopular decisions. In 2025, despite technological advances and strategic agreements, the narrative seems to be repeating itself: a powerful brand facing its own inconsistency.
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