Microsoft has an issue with rumors and its broken image
From full hardware cancellation rumors to claims that retailers are no longer selling their hardware.

It’s interesting to watch this new Xbox rumor drama unfold, especially since we’re used to seeing similar cycles in PC hardware news. Gamers who don’t closely follow such reports often fail to realize that positive and negative rumors spread equally fast. Many share these claims without understanding the real situation, often without ill intent, but trolls and bots tend to fuel them until they spiral out of control and force a company to respond.
Microsoft has faced three major rumor storms recently. The first involved claims that the company had canceled all upcoming Xbox hardware, and the second suggested that current consoles were disappearing from retail stores. There was also a rumor about Xbox handheld being canceled because AMD would not produce the chip unless 10M units would be made, debunked by journalists with closer ties to Microsoft.

Rumors that Xbox hardware is disappearing from stores, Source: Reddit
Recent reports claimed that Walmart and Target were removing Xbox consoles and games from stores. The rumor spread over the weekend across Reddit and gaming sites, fueled by posts from self-identified store employees who said both retailers were clearing out Xbox stock and replacing display cases with Nintendo Switch 2 products. This followed months of growing frustration among fans after repeated price increases on hardware and Game Pass subscriptions.
Several journalists and Xbox community figures quickly debunked the claims, confirming that both Walmart and Target still carry Xbox products. Windows Central also contacted store employees who denied any plans to stop selling Xbox hardware or accessories. Microsoft later issued an official statement:
“Target and Walmart, among other retailers, remain committed partners for Xbox consoles, accessories, and games.”
— Microsoft PR to Windows Central
Earlier this year, Microsoft confirmed another round of price adjustments, raising the Xbox Series X from $499 to $649 and the Series S from $299 to $399 in some regions. Earlier this month, Game Pass Ultimate saw a 50% price hike , fueling speculation that Microsoft might shift focus toward cloud gaming and Windows integration.
The company maintains that new Xbox hardware is still in development, supported by a decade-long partnership with AMD. Yet, with layoffs, studio closures, and ongoing communication issues, it’s hard to believe a word Microsoft says.
Source: Windows Central , Notebookcheck