Microsoft Reaffirms Commitment to Xbox Hardware Amid Retail Exit Rumors
Microsoft has dismissed growing speculation that it plans to abandon its Xbox hardware business, following reports that major U.S. retailers Walmart and Target were scaling back or removing Xbox products from store shelves.
The tech giant’s clarification came after a weekend of confusion sparked by social media posts claiming Xbox consoles had disappeared from certain retail locations, fueling rumors that Microsoft was winding down its console division in favor of cloud gaming and handheld devices.
In a statement to Windows Central, Microsoft confirmed that “Target and Walmart, among other retailers, remain committed partners for Xbox consoles, accessories, and games.” The company stopped short of naming specific console models but emphasized its ongoing investment in Xbox hardware.
The rumors began when a Reddit user claimed their local Target had removed its Xbox section. Others chimed in, saying they had noticed dwindling or absent Xbox stock at nearby Walmart and Target stores in recent weeks. These reports were followed by stories suggesting Microsoft might be pivoting fully to cloud-based gaming, especially amid reports of price increases, studio closures, and layoffs within its gaming arm.
However, multiple independent checks appear to have debunked the claims. YouTuber Destin Legarie said employees at both Walmart and Target confirmed that Xbox consoles had not been discontinued. While some stores had limited stock or shipment delays, staff members insisted no instruction had been given to clear inventory.
Longtime Xbox representative Larry Hryb, better known as Major Nelson, also weighed in via X (formerly Twitter), stating that he personally saw Xbox hardware and games still available at several Target and GameStop locations this week.
Despite this reassurance, the conversation highlights a challenging year for Microsoft’s gaming division. The company has faced criticism for raising prices twice in one year on its Xbox Series consoles and increasing subscription fees for Game Pass by as much as 50% on its premium tier.
Although Microsoft continues to push its “play anywhere” vision through Game Pass and cloud streaming, the company appears intent on keeping traditional consoles in its ecosystem — at least for now.
