microsoft
JUNG YEON-JE / Xbox
Given recent news about the state of the Xbox Series S and X consoles, it shouldn’t come as a surprise that Xbox’s hardware sales continue to nosedive.
Microsoft shared its Q1 2026 earnings, revealing that Xbox hardware revenue was down 29 percent year over year.
This latest financial news paints a bleak picture for the hardware division, as the numbers keep getting worse rather than better. Last quarter, hardware sales were down 22 percent, down 29 percent for the first two quarters of 2025, and down 42 percent in Q4 of 2024.
Things will only get more challenging as the company also has to contend with Donald Trump and his blatant abuse of tariffs, which have forced Microsoft ot make some unpopular decisions like raising the price of the Series X console to $599.
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The company has also implemented a new strategy with its “Xbox everywhere” initiative, which promotes the idea that any device that can play its games in the cloud is an Xbox.
Microsoft’s gaming division has also begun ditching the idea of exclusive games and, basically, conceded the “console wars” when it announced that Halo: Campaign Evolved, a remake of the first game in the franchise, is coming to the PlayStation 5.
Despite all the dire news about hardware sales, Microsoft is not out of the console business yet. The company just released two new handheld devices in partnership with ASUS, the ROG Xbox Ally and Xbox Ally X.
Company heads like Xbox President Sarah Bond and CEO Satya Nadella have also begun teasing the next Xbox console, sharing that it will be a premium, high-powered PC/gaming console experience that will most likely include multiple storefronts, like Steam.
We shall see what the future holds for the company.
NICHOLAS KAMM / Microsoft / Donald Trump
Well, this isn’t surprising. Microsoft is biting its tongue following Donald Trump’s latest AI-generated slop featuring himself as Master Chiefand DHS using Halo to promote ICE.
While the country faces a wave of uncertainty amid the government shutdown that is now in day 28, the Trump administration showed how unserious it is after White House officials shared an AI-generated photo of Trump as Halo’s main protagonist, Master Chief, standing in front of the White House while saluting an American flag with only 40 stars.
Trump’s ridiculous AI-generated image managed to steal Halo Studios’ thunder, which just announced Halo: Campaign Evolved, a complete remake of the 2001 game Halo: Combat Evolved that will also mark Master Chief’s arrival on the PlayStation 5.
But that wasn’t the only disgusting post. The Department of Homeland Security also got in on the act, sharing a Halo-themed photo with the “DESTROY THE FLOOD JOIN. ICE. GOV.”
Microsoft’s silence shouldn’t come as a shock to anyone. The company’s CEO, Satya Nadella, has already kissed Trump’s ring, attended his inauguration, and Microsoft has donated to the construction of the ugly White House ballroom, plus has many federal contracts.
You know who’s not staying silent, the White House, and they responded to journalist Alyssa Mercante when she reached out for comment on the matter.
Like we said in our previous post on the image, Trump would probably take credit for ending the “console wars,” and that’s precisely what happened in the statement.
“Yet another war ended under President Trump’s watch—only one leader is fully committed to giving power to the players, and that leader is Donald J. Trump. That’s why he’s hugely popular with the American people and American Gamers.”
This administration is definitely the worst.
People Who Used To Be Involved With Halo Are Speaking Out
But some individuals who were involved with Halo at one point have expressed their displeasure with DHS/ICE’s recent posts.
Marcus Lehto, co-creator of Halo and lead designer of Master Chief, spoke with Game File’s Stephen Totilo, calling the DHS’s post “absolutely abhorrent.”
He continued, “It really makes me sick seeing Halo co-opted like this.”
Jaime Griesemer, a chief designer on several of the early games, told Game File that he found Trump’s Master Chief post funny but opposed the ICE post.
“Using Halo imagery in a call to ‘destroy’ people because of their immigration status goes way too far, and ought to offend every Halo fan, regardless of political orientation,” Griesemer said. “I personally find it despicable. The Flood are evil space zombie parasites and are not an allegory to any group of people.”
You can see more reactions below.
Getty Images / Donald Trump / Halo: Campaign Evolved
Donald Trump and his extremely corrupt administration continue to use video games to push his divisive agenda.
Halo Studios is coming off the announcement of Halo: Campaign Evolved, the remake of the iconic first game, Halo: Combat Evolved, that will bring Master Chief to the PlayStation for the first time, and now the studio is probably big mad that Donald Trump and his administration are using their game to promote divisiveness within the country.
In what has become “I can’t believe this is really a moment,” the official White House account on social media shared more AI-generated slop of Donald Trump wearing Master Chief’s Spartan armor while saluting an American flag with a pronounced and egregious error.
The White House’s headscratching post was a response to GameStop’s latest cringeworthy post announcing the end of console wars, and finally, the announcement of Halo coming to the PlayStation 5.
Clearly, the White House intern in charge of posting on the account knows a bit about gaming, as the post’s caption read “Power To The Players,” which is GameStop’s slogan.
We have no idea why the White House would comment on this, but we assume it has to do with Trump’s unproven claims that he has “ended eight wars,” so now he thinks he can add this one to that list.
Don’t be shocked if Trump moronicaly mentions this as a war he brought to an end.
DHS Also Used A Halo-Themed Meme
But that wasn’t the only Halo-themed meme shared by this disastrous administration.
DHS (Department of Homeland Security) also got in on the act and shared a photo from Halo featuring Master Chief in a Warthog with “Destroy The Flood, Jone. ICE. GOV” written across the picture, referring not to the symbiotic alien species from the game but to undocumented immigrants.
This latest video game-themed post follows the distasteful Pokémon video putting detained undocumented immigrants’ faces on Pokémon cards, and another video using DaBaby’s music to show its new vehicles to harass law-abiding immigrants.
It remains to be seen if this tactic is actually helping with recruitment, as ICE is currently struggling to grow the numbers, and some ICE recruits are showing up without being properly vetted.
We wished we could hit reset on this trash video game immediately. All you folks had to do was vote for Kamala Harris.
Just saying.
Also, we can’t count on Microsoft to handle this because ceo Satya Nadella is one of the many who have already kissed Trump’s ring.
You can see more reactions below.
SOPA Images / Xbox
For those eager to get their hands on an Xbox dedicated handheld device, you’ll have to wait a bit longer.
Xbox chief Phil Spencer hasn’t been tight-lipped about the long-rumored Xbox handheld, speaking about the device as far back as 2017 when he claimed that Microsoft had “roughly designed” one in the past, while bringing up the device in numerous discussions that hint at its continued development.
Windows Central then threw more fuel on the fire when it reported on Microsoft’s strategy, which will see the company not only team up with a third-party on an Xbox-branded portable PC codenamed “Kennan” but also continue to work on its device, launching alongside the successor to the Xbox Series X/S in 2027.
Now, the website reports that Microsoft has “sidelined” the device as part of a strategy shift.
Per Eurogamer:
Now, though, Windows Central claims Microsoft has had a bit of a strategic rethink, and development of its own handheld device has been “sidelined”. According to the publication’s source, the company has internally announced it’ll instead “prioritise its teams to improve Windows 11 gaming performance, specifically for devices like the ASUS partner device Project Kennan” (NB. the site originally reported this under the name “Keenan” back in March, but has since updated its original story). It doesn’t sound like Microsoft is completely abandoning its own handheld plans, however; Windows Central says the company “still has big ambitions and is investing heavily to deliver a native Xbox handheld”, but third-party devices and Windows 11 improvements will be where it focuses its resources for now.
Project Kenna Is Still Coming
Windows Central reports that Project Kennan is “essentially finished” in terms of hardware, with the software component receiving a “significantly boosted effort” from Microsoft’s Xbox and Windows teams to “improve the experience on the software side.”
The plan to launch the Xbox-branded ASUS device sometime “later this year” is still on the table.
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Source: CHARLY TRIBALLEAU / Getty / / Microsoft / Xbox
Welp, it’s going to cost you more if you’re still in the market for an actual Xbox Series X or Series S console.
Xbox announced today that it is raising the prices of the Xbox Series S and Series X consoles globally, except for accessories, which will see their prices increase in the US and Canada. First-party titles are expected to reach the $80 threshold by the holiday season.
The price hike will take effect beginning May 1. You can peep them below:
Xbox Series S 512 – $379.99 (up from $299.99)
Xbox Series S 1TB – $429.99 (up from $349.99)
Xbox Series X Digital – $549.99 (up from $449.99)
Xbox Series X – $599.99 (up from $499.99)
Xbox Series X 2TB Galaxy Special Edition $729.99 (up from $599.99)
Xbox Wireless Controller (Core) – $64.99
Xbox Wireless Controller (Color) – $69.99
Xbox Wireless Controller – Special Edition – $79.99
Xbox Wireless Controller – Limited Edition – $89.99 (up from $79.99)
Xbox Elite Wireless Controller Series 2 (Core) – $149.99 (up from $139.99)
Xbox Elite Wireless Controller Series 2 (Full) – $199.99 (up from $179.99)
Xbox Stereo Headset -$64.99
Xbox Wireless Headset – $119.99 (up from $109.99)
Here’s what Xbox had to say about the price hikes in an official statement:
We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development. Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.
A History of Price Hikes
This marks the first time the Series S has seen a price hike since its 2020 release. Xbox committed to the console’s current prices in 2022, following PlayStation’s price increase for the PS5 due to inflation.
The Xbox Series X experienced a price increase in 2023 in most countries, except the US, and Xbox Game Pass underwent multiple price hikes globally.
These new Xbox price increases should not come as a surprise, as PlayStation announced price hikes for the PS5 in the UK, Europe, Australia, and New Zealand three weeks ago.
Nintendo recently faced criticism after revealing that the Nintendo Switch 2 would cost $450, one $80 game (Mario Kart World), and price hikes for Switch 2 accessories following Donald Trump’s misuse of tariffs.
Somehow This Is Nintendo’s Fault
Speaking of Nintendo, gamers, of course, are BIG MAD about the price hikes and already pointing fingers at someone. Gamers should blame Donald Trump and his misguided trade policies, as well as his misuse of tariffs. Still, somehow, Nintendo is being blamed for what Xbox’s decision, with “Thanks, Nintendo” immediately trending after the news broke.
While we understand that Nintendo is not at fault for Microsoft’s or even a potential decision from PlayStation, we acknowledge gamers’ frustration with having to spend more money at a time when prices are increasing. There doesn’t seem to be enough money to cover these expenses.
You can see more reactions in the gallery below.
5. Lol, this is crazy
7. A thread
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Source: Tomohiro Ohsumi / Getty / Xbox
Even though Xbox is not doing so well in the console market this generation, don’t count out the Microsoft gaming division just yet, they still have something to offer.
Windows Central’s Jez Cordon exclusively reports that Microsoft plans to launch the next-gen Xbox console in 2027 and an Xbox-branded handheld sometime in 2025.
According to the website, a partner PC gaming handheld codenamed Keenan is currently in the works for late 2025 while a next-gen successor for the Xbox Series X and S consoles is two years away.
IGN reports that Microsoft has yet to comment on the report, but company executives have been dropping breadcrumbs about Xbox’s plans in numerous interviews.
Per IGN:
Microsoft is yet to comment on the report, however its gaming executives have spoken publicly about both devices in vague terms across various interviews. In January, Jason Ronald, Microsoft’s VP of ‘Next Generation,’ told The Verge that the company plans to combine Xbox and Windows experiences together for PC gaming handhelds made by original equipment manufacturers (OEMs), otherwise known as third-party hardware manufacturers. Existing PC gaming OEMs include Asus, Lenovo, and Razer. Keenan does not relate to a first-party Xbox handheld, which Microsoft gaming boss Phil Spencer recently indicated is years away.
As for the next-gen Xbox, Windows Central said it is fully greenlit by Microsoft CEO Satya Nadella. The console is reportedly a premium successor to the Xbox Series X, and this console, alongside a first-party Xbox gaming handheld and new controllers, are set to round out Microsoft’s console offering in 2027. The suggestion, then, is Microsoft does not plan to release a direct next-gen successor to the less powerful Xbox Series S. Perhaps Microsoft expects its handheld to occupy the cheaper, less powerful console space.
According to Windows Central, the next Xbox will be more like a PC and will support third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility, a popular feature, will also return.
We are curious to see this handheld. There is also that other console that leaked, Brooklin, which is still up in the air, with some wondering if Microsoft canceled it.
Only time will tell regarding what the gaming company has up its sleeve as it concedes this gaming generation, and looks forward to the future.
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Source: NurPhoto / Getty / Skype
Do you remember Skype? We are sure not many of you do, but it was once the most popular way people conducted free video chats with each other before Zoom and other apps came along. For those who do, we are sad to announce that Microsoft has decided to retire it.
Microsoft, which acquired the free video calling service for an eye-watering $8.5 billion in 2011, announced via a post on X, formerly Twitter, that it is sunsetting Skype and telling users to migrate to a free version of Microsoft Teams.
Since its inception, Skype has gone from being a platform for video calling that was so popular that it became a verb to now being a relic of the tech past thanks to the arrival of FaceTime, WhatsApp, Zoom, and Slack.
In a blog post, Microsoft said the decision to kill Skype was “to streamline our free consumer communications offerings so we can more easily adapt to customer needs.”
Speaking to CNBC about Skype, Jeff Teper, president of Microsoft 360 apps and platforms said that the company “learned a lot from Skype over the years. … But we felt like now is the time because we can be simpler for the market, for our customer base, and we can deliver more innovation faster just by being focused on Teams.”
Social Media Thinks Skype Fumbled The Bag Epically
The reactions to the news aren’t surprising. Many believe that Microsoft let Zoom and other clients steal its thunder, especially during the pandemic when video chatting was a necessity for social distancing.
“Skype had a 17 year headstart and cracked under pressure in 2020,” one user on X, formerly Twitter wrote.
Another user noted Skype’s importance to older people because it’s all they know and migrating to a new service could be a headache for them.
“This is shocking,” another user named Maphry wrote in a post on X. “There are so many elderly who are not happy to change technologies anymore, but are used to this one over decades to keep in touch with their loved ones. It will require a lot of effort (usually by their families) to bring them over to alternatives.”
No lies detected.
Welp, Skype had a good run, you can see more reactions in the gallery below.
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Source: Xbox / LG Smart TVs
Yup, that’s right, your new LG Smart TV is now an Xbox. Microsoft announced at CES 2025 a partnership with LG Electronics to bring the Xbox app to select LG Smart TVs as part of its push, allowing players to play Xbox games on devices not called a Series X or S.
Soon, gamers will be able to enjoy titles like Call of Duty: Black Ops 6, upcoming releases like Avowed (launching February 18, 2025), and hundreds of others via Game Pass Ultimate on the television’s Game Portal.
“We are thrilled to announce the partnership with Xbox, which aims to enrich the gaming experience on LG Smart TVs with a broader selection of popular games,” said Chris Jo, senior vice president of platform business at LG Media Entertainment Solution Company. “The Gaming Portal will provide users with a seamless, convenient, and exciting way to enhance the gaming experience on LG Smart TVs.”
“Our partnership with LG will help players easily discover and play games through the new Gaming Portal on LG Smart TVs,” said Lori Wright, Corporate Vice President of Xbox. “We’re fortunate to have a great partner in LG who will bring Xbox Cloud Gaming to more players, letting new and longtime Xbox’ers find their favorite games and play with friends across screens.”
Xbox Is Dead Serious About It’s New Vision
This latest move comes as Microsoft launches its new “This is an Xbox” campaign. The campaign aims to sell gamers on the idea that their smartphones, gaming laptops, handheld gaming systems, and smart TVs are all Xbox consoles.
Team Green has straightforwardly changed its company approach, ditching exclusivity by bringing games like Indiana Jones and the Great Circle, Hi-Fi Rush, and other future Xbox exclusives to the PS5 and Nintendo Switch.
Depending on who you ask, the decision is either good or a slap in the face, but with the PS5 currently torching the Series X in sales, Microsoft had no choice.
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Source: picture alliance / Getty / Phil Spencer
The video game world is still reeling after word hit the e-streets that Xbox closed Arkane Austin, Tango Gameworks, and Alpha Dog game studios under the Bethesda Games umbrella. Now, gamers are focusing on Xbox chief Phil Spencer and his leadership, or lack thereof. Should Phil Spencer be fired? Is it time for him to go? That’s what many are calling for to happen after this recent round of studio closures and the absorption of one into ZeniMax Online Studios.
While many blame the practice of companies like Xbox and PlayStation acquiring game studios, some also feel that Spencer’s feet should be held to the fire.
Kotaku’s Zack Zwiezen proclaimed in an article that “It’s time to stop giving Phil Spencer a pass,” pointing out the many “bad decisions Spencer has made during his time as CEO and contradictory statements.
Per Kotaku:
In October 2020, shortly after Xbox announced its plans to consume Bethesda, Spencer told Kotaku: “This deal was not done to take games away from another player base” and added that Xbox wants “more people to be able to play games, not fewer people to be able to go play games.” Yet, in March 2023 Redfall director Harvey Smith said that Microsoft stepped in after buying Bethesda and canceled a PS5 port of the vampire hunting co-op game. Starfield shipped only on Xbox and PC. And despite a few Xbox games—like Grounded and Sea of Thieves—jumping ship to PlayStation and Switch, future big titles like Indiana Jones won’t be multiplatform.
Xbox’s boss has also talked a big game about giving developers the freedom to make what they want to make, explaining in a May 2023 interview with Kinda Funny: “When a team like Rare wants to do Sea of Thieves, when a team like Obsidian wants to do Grounded, and Tango wants to go do Hi-Fi [Rush] when everyone probably thought they were doing The Evil Within 3. I want to give the teams the creative platform to go an push their ability, push their aspirations.”
The article states that Spencer says the right things, but even when those studios get to make the games they want, and if they are critical successes, there is still a chance they will suffer the same fate as these latest studios.
Social Media Reactions
Social media hasn’t been kind to Spencer either, and that’s totally understandable because we are all tired of hearing about these layoffs while people in offices continue to line their pockets with cash while game developers have to figure out how to make ends meet.
Former PS I Love You XOXO co-host and head of Pen To Pixels Janet Garcia also called out Spencer for his comments that have now “aged like milk,” pointing out his penchant for trying to be transparent, something people appreciate about Spencer, leaves him open to these contradictory moments.
“Yeah so many of Xbox’s comments are aging like milk rn. This is the danger of selling the “good guy” narrative. It only works when you do “good” things. That said this is also why PlayStation and Nintendo don’t talk to anyone anymore. They’re like nah I’m not gonna play myself,” Garcia said on X, formerly Twitter.
Former Blizzard President Mike Ybarra Comes To Phil Spencer’s Defense
Former president of Blizzard Entertainment Mike Ybarra tried to empathize with Spencer, writing on X, “I know this hurts him [Spencer] as much as anyone else.”
Ybarra continued, “I’m not trying to defend the decisions. I think we all get ourselves into situations that are tough and unexpected (certainly I have). It’s part of the job, as is the accountability for the outcomes. But he’s a good human and he cares deeply for the creative process and developers. That’s my first hand experience in working closely with him for 8+ years and knowing him for 24+.”
Unfortunately, folks were not trying to hear it and didn’t hesitate to tell Ybarra he was wrong.
What a sad state of affairs.
Hopefully, we will hear from Spencer in his own words about this latest decision.
Until then, you can see more reactions in the gallery below.
1. Oh wow.
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Source: Christian Petersen / Getty / Xbox
The video game industry is in turmoil, and you wouldn’t think that’s the case because of the quality of games we have been getting. While we, as gamers, are enjoying a spoil of riches, developers continue to lose their jobs at a ridiculous clip.
Xbox is navigating choppy waters as it shifts its business model, putting some of its biggest exclusive titles on competitive consoles.
One of those titles was the beloved Hi-Fi Rush from Tango Gameworks, one of the many studios Xbox acquired when it acquired Bethesda Game Studios.
In a stunning turn of events, Tango Gameworks is one of four studios, including Arkane Austin, the developer of the massive flop Redfall, Alpha Dog Studios, and Roundhouse Games, which have been closed by Xbox, IGN reports.
Xbox is one of the many video game companies that have been unable to avoid the massive layoffs in the industry. The Microsoft company started the year by laying off almost 2,000 employees, which led to then-Blizzard president Mike Ybarra leaving.
Now comes the news of a new round of layoffs due to significant studio closures under the Bethesda umbrella.
Per GameRant:
Xbox has decided to shut down Arkane Austin, Alpha Dog Studios, and Tango Gameworks, with Roundhouse Games also effectively shutting down by being “absorbed” by ZeniMax Online Studios. In an email from Matt Booty obtained by IGN, it was explained that these shutdowns are about “prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games.” Arkane Austin worked on the 2017 Prey game and Redfall, Tango Gameworks was known for The Evil Within and the critically-acclaimed Hi-Fi Rush, Alpha Dog Studios was working on the Mighty Doom mobile game, and Roundhouse Games was primarily serving a support role at the time of its closure.
Arkane Austin’s demise could directly result from the disastrous launch of Redfall. Reviewers immediately deemed it a critical flop due to its broken state and abandoned it despite some quality-of-life improvements.
In a statement on X, formerly Twitter, Arkane Studios confirmed the Austin studio’s closure, telling gamers who bought the Hero Pass of the premium Bite Back edition or Bite Back upgrade will be eligible to receive the value of the upgrade.
Arkane says Redfall serves will remain online, but there will be no further updates.
Tango Gamework’s closure is the biggest surprise due to Hi-Fi Rush’s success following its surprise drop on the Xbox Game Pass and, most recently, its newfound popularity on the PlayStation 5 console.
What a spooky time to be a developer in the video game industry.
You can see reactions to the sad news in the gallery below.
1. No lies detected
2. This is also true
3. We’re old enough to remember the push for Xbox to gobble up more studios.
8. Cold world
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