Microsoft Quells Xbox Death Rumors Amid Retail Confusion, Assures Fans It’s Not Exiting the Console Business

Microsoft has moved to put an end to growing speculation that it will exit the console hardware business, confirming that the Xbox line remains alive and well.

The clarification follows a storm of reports over the weekend suggesting that major US retailers including Walmart and Target were pulling Xbox products from their stores, fueling fears that the company would quietly end its games console division.

The controversy began when posts surfaced on Reddit claiming that Target had started removing its Xbox sections, with some users alleging that Walmart hadn’t restocked the consoles in weeks. Shortly after, a flurry of social media chatter and online posts amplified the story, with some stating that Microsoft was completely killing its Xbox Series

For months, Microsoft has been accused of deprioritizing its console business in favor of a “play anywhere” model focused on cloud streaming and cross-platform gaming. The company’s push into cloud-based gaming, powered by its Xbox Cloud Gaming service, allows users to play without owning a console – a model seen by many as the future of gaming. Microsoft’s support for portable devices such as the ASUS ROG Ally and the upcoming ROG Ally multi-device.

The situation has been compounded by deeper challenges facing Microsoft’s gaming division. Earlier this year, the company raised the price of its Xbox Series consoles twice – a move that hurt sales and made the devices less attractive compared to Sony’s PlayStation 5. Several Microsoft-owned game studios have also been shuttered as part of cost-cutting and restructuring efforts, while the price of Xbox Game Pass, its flagship subscription service, has increased by 50% for the top-tier plan. All of these developments fueled the belief that Microsoft was repositioning itself from hardware to software and services.

By the time the retail rumors emerged, many fans were willing to believe them. Reports circulated widely that Costco had also removed Xbox consoles from its inventory. Speculation snowballed, with headlines on gaming blogs declaring that Microsoft could be preparing to shut down its console business.

However, evidence quickly emerged to contradict these claims. YouTuber and gaming journalist Destin Legarie contacted several Target and Walmart locations to verify the reports. Employees at both chains reportedly confirmed that there were no internal memos or instructions to remove Xbox stock or empty inventory. A Target employee noted that while the store hasn’t received new shipments in about a week, more consoles are expected to arrive soon, albeit in small quantities.

Adding weight to the denials, Larry Hryb – better known as “Major Nelson,” a longtime public face of the Xbox brand who served 23 years as director of programming for Xbox Live – weighed in on social media. Hryb said he personally visited several Target and GameStop locations and discovered that Xbox hardware and accessories were still on sale. His comments helped calm fans’ nerves as confusion rippled through the gaming community.

Windows Central then did its own checks and confirmed that Xbox consoles were still listed and available at Target, although stock levels were low and availability seemed inconsistent. A Target employee told the store that the Xbox section was not being removed, but acknowledged that console inventory often fluctuates, particularly during production transition periods or before restocks.

Microsoft itself later released a statement to Windows Central, saying that “Target and Walmart, among other retailers, remain committed partners for Xbox consoles, accessories and games.” Although the company didn’t explicitly name the Xbox Series X and S in its statement, the inclusion of the word “consoles” indicates that the hardware business is still part of its ongoing strategy.

Still, Microsoft’s vague wording left some observers parsing its every sentence. Some analysts have suggested that the term “consoles” could refer not only to current-generation devices, but also to the company’s expanding hardware ecosystem, including upcoming models and handhelds. This ambiguity reflects how Microsoft has subtly shifted its vision of what “Xbox” means in the modern gaming landscape.

Indeed, Microsoft is already planning future iterations of its hardware range. Reports suggest that the company is preparing a refreshed version of the Xbox Series X with a more compact design and possibly an all-digital variant. Executives are also reportedly working on next-generation hardware slated for release around 2026, potentially with AI-based optimization and hybrid streaming features.

For now, Microsoft seems eager to reassure gamers that it’s not abandoning the platform that helped define its gaming legacy. Despite slow sales and temporary retail confusion, Xbox consoles remain in production and on shelves, even if they’re not in abundance.