May 26 2025 – In a recent live streaming session featuring Insider Gaming’s head, Tom Henderson, alongside Mike Straw, A2TheP, and GTH, a significant revelation emerged regarding Microsoft’s gaming strategy. Henderson disclosed that Microsoft is planning to phase out its Xbox gaming console line, with the upcoming next-generation console marking the final hardware release under the Xbox brand. Among the anticipated lineup for this next generation is a handheld gaming device.
Over the past year or so, Microsoft has been making notable moves that hint at a broader shift in its gaming ecosystem. Several of its popular titles, including “Hi-Fi Rush,” “Sea of Thieves,” “Indiana Jones and the Great Circle,” “Forza Horizon 5,” and “Senua’s Saga: Hellblade II,” have made their way to the PlayStation 5 platform. This cross-platform availability suggests a deliberate strategy by Microsoft to expand its game reach beyond its proprietary hardware.
Furthermore, Microsoft’s recent marketing campaigns have underscored its intention to de-emphasize Xbox hardware, instead positioning a variety of devices—ranging from PCs and TV sticks/set-top boxes to handheld gaming consoles and VR headsets—as viable platforms for playing Microsoft’s gaming titles. This approach reflects a broader industry trend towards cross-platform compatibility and a focus on software and services over hardware exclusivity.
The decision to discontinue the Xbox console line, if confirmed, would mark a significant turning point for Microsoft in the gaming industry. It would signal a shift towards a more software-centric strategy, where the company leverages its extensive game library and cloud gaming capabilities to reach players across a multitude of devices, rather than being tied to a single hardware platform.
As the gaming landscape continues to evolve, Microsoft’s move towards a more inclusive and cross-platform approach could potentially reshape the competitive dynamics within the industry, opening up new avenues for growth and innovation.
