Core Viewpoint - Microsoft is actively developing the next generation of Xbox hardware, despite rumors suggesting the company may exit the console market due to financial constraints and restructuring efforts [1][4][15] Group 1: Xbox Hardware Development - Microsoft Xbox President Sarah Bond has officially denied rumors of the company exiting the console market, stating that they are in the process of designing and testing the next generation of Xbox hardware in collaboration with AMD [1] - The company has confirmed that as long as there is demand from players and developers for innovation, Xbox will continue to exist [1] Group 2: Financial Constraints and Cost-Cutting Measures - Microsoft has been forced to cut costs in its gaming division due to financial pressures, with plans to invest $80 billion in AI infrastructure by fiscal year 2025, leading to layoffs in the Xbox department [4][6] - The acquisitions of Bethesda for $7.5 billion and Activision Blizzard for $68.7 billion have begun to show negative impacts, with underwhelming game releases failing to meet expectations [6][8] Group 3: Xbox Game Pass and Market Position - Xbox Game Pass (XGP) subscription growth has been disappointing, increasing only from 34 million in February 2024 to 38 million by June 2025, which is far below Microsoft's expectations [6][8] - The dual-console strategy of Xbox Series X/S has been criticized, particularly the performance limitations of Xbox Series S, which have deterred game developers from supporting the platform [8][9] Group 4: Competitive Landscape - Historically, Xbox has struggled against PlayStation, with Sony consistently leading in console sales, which has led to Xbox being viewed as a defensive product aimed at limiting PlayStation's market influence [11][13] - The original intent of Xbox was to prevent PlayStation from evolving into a PC-like platform, a goal that has been largely achieved by Microsoft [13][15]