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The current state of Xbox: what's happening to Microsoft's console?

One of the pillars of modern gaming has long been Microsoft's Xbox console. The platform influenced console gaming from the revolutionary days of Halo 2 and Xbox Live to the game-changing Xbox 360. By 2025, however, Xbox is about ecosystems and subscriptions rather than just hardware and exclusives. This confusion has made Xbox fans asking. Is Xbox still a console or has become a service?

Microsoft is pulling back from the era of Xbox exclusives in favor of a multi-platform strategy:

In the Xbox Era podcast channel, Phil Spencer revealed that Microsoft is transitioning to a multiplatform third-party publisher and has no intention of persuading consumers to purchase an Xbox machine in the same manner as its rivals. Phil Spencer himself stated, "I'm not trying to move them all over to Xbox anymore."

Minecraft, Oblivion Remastered, Forza Horizon 5, Indiana Jones and the Great Circle, Age of Empires II: Retold, The Outer Worlds 2, Doom: The Dark Ages, Gears of War Reloaded, and Hellblade II are among the games currently available on the PS5 and Switch. Many of these titles are also launching simultaneously on the Xbox, PC, and Sony systems.

Microsoft is moving away from console exclusives. Although Xbox hardware is still a part of its larger ecosystem, the company's "Xbox Everywhere" vision-publishing games on multiple platforms and growing Game Pass is receiving more and more attention.

Studios Restructure: Layoffs and Cancellations

This year has been challenging for Xbox Game Studios:

  • Activision Blizzard and Bethesda have all laid off thousands of employees.
  • Games like Perfect Dark and Everwild have been canceled.
  • Uncertainty around teams like Arkane Austin, Tango Gameworks, and more
  • Turn 10 Studios: According to reports, the Forza Motorsport team laid off about half of their employees.

New games like Gears: Reloaded, The Outer Worlds 2, and Hellblade II offer encouraging hints of what's to come despite the chaos. Microsoft has massive reach thanks to its recent studio acquisitions, but it has been challenging to manage that talent when cost-cutting pressures are applied.

Microsoft's next gen console

A multi-year partnership with AMD to "co-engineer silicon" for Microsoft's "next-generation Xbox consoles" was disclosed by Sarah Bond, president of Xbox. According to that statement, Xbox appears to be focusing on a variety of consoles for its upcoming hardware cycle, like the ROG Xbox Ally and ROG Xbox Ally X, that will be released later this year.

Windows is highlighted in Bond's announcement, allowing users to "play the games you want, with the people you want, and wherever you want." This announcement seems to suggest that Xbox's upcoming console may not even be a console.

Is the upcoming Xbox "console" a PC, though? Right now, the answer isn't clear. While Microsoft hasn’t confirmed an exact date all credible signs point to the next-gen Xbox launching in 2027

Sony is winning the console war?

The PS5 has continuously outsold the Xbox Series X|S on a global scale. This is due to Sony's excellent first-party exclusives, broader global reach, and brand loyalty.

Console wars involve ecosystems, services, game libraries, and user preferences in addition to actual sales. Sony is concentrating on the classic console and exclusive game strategy, whereas Xbox is progressively establishing itself as a gaming service provider across platforms (console, PC, and cloud).

So, In terms of sales and exclusive games, the answer is currently yes. However, Xbox's approach to cloud gaming and Game Pass may change the game in the years to come.

Xbox First-Party Games (2025–2026)

🗓️2025 Releases

The Outer Worlds 2

Release Date: October 29, 2025

Grounded 2

Release Date: July 29, 2025 (Early Access)

Ninja Gaiden 4

Release Date: October 21, 2025

Wuchang: Fallen Feathers

Release Date: July 24, 2025

Abiotic Factor

Release Date: July 2025

🗓️ 2026 Releases

Gears of War: E-Day

Release Date: 2026

Fable (Reboot)

Release Date: 2026

Grand Theft Auto VI

Release Date: May 26, 2026

  • Although there aren't many major reveals yet, the 2025–2026 window is promising; release dates should be confirmed with announcements later in 2025.
  • If you have Xbox or PC Game Pass, you will probably get early access and some games day one on Game Pass.

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