Xbox sales are struggling in Europe and game developers may stop working with the platform.

It seems like the future of Xbox is becoming increasingly unclear. Phil Spencer, the head of Xbox, has once again hinted at the possibility of a portable device. However, recent news from the Game Developers Conference (GDC) paints a grim picture for Microsoft's hardware plans.

Last year, Xbox had a moment of positive press thanks to its successful summer showcase. However, by the end of the year, both Starfield's underwhelming reception and reports of poor console sales in the US and Europe took a toll. The Xbox has never been as popular in Europe, but sales dropped by a staggering 27% last year while the PlayStation 5 saw a 376% increase.

Now, a trusted source has revealed that things have only gotten worse in 2024. In fact, both third-party publishers and retailers are considering scaling back or completely dropping their support for Xbox. This information comes from Christopher Dring, editor of GamesIndustry.biz, who had access to sales figures not typically made public. He mentioned in a podcast that he heard from a prominent company who released a big game last year, saying "I don't know why we bother supporting it." There were also reports of retailers in Europe cutting back on their Xbox stock, leading to concerns that the Xbox may become irrelevant in terms of hardware.

Dring also discussed the recent GDC event, where he heard about developer apathy towards the rumored PS5 Pro and concerns about the Xbox's relevance as a hardware manufacturer. He stated that the majority of developers are focusing on PC and PS5, and that creating versions for the Xbox may not be worth the effort.

This is not the first time that Xbox has tried to jumpstart a new generation early. Dring noted that while talking to publishers, he was told that it's important for Microsoft to ensure that it makes sense for studios to continue making versions of their games for the next generation Xbox, which could arrive as early as 2026.

Despite the uncertain future of Xbox's hardware, Phil Spencer's recent interview with Polygon has sparked rumors of an Xbox portable. He hinted at his interest in a handheld Xbox and spoke about making a list of things he would do differently in order to make it feel like an Xbox. This has only fueled speculations about a potential Nintendo Switch or Steam Deck-inspired device as the next generation hardware.

While Microsoft has promised to reveal new hardware later this year, it's unclear what form it will take. Some believe it will be a digital-only version of the Xbox Series X, but it's clear that Microsoft is eager to move onto the next generation quickly.

What do you think the future holds for Xbox? Will we see a portable device in the near future? Share your thoughts with us via email, comments, or on Twitter. And don't forget to sign up for our newsletter to stay updated on all the latest gaming news.

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