Microsoft has officially swatted away rumours circulating stateside this past weekend suggesting that their next-gen Xbox console project had been canned. The company clarified that they remain heavily invested in developing their own custom hardware, leaning on the collaborative deal inked with AMD back in June.

The whisper campaign began on the gaming forum NeoGAF over the weekend. A user by the handle 'SneakersSO' claimed that plans for future Xbox hardware had shifted from 'confirmed' to 'on hold,' sending the rumour mill into overdrive.

While the original post stopped short of explicitly stating the console was dead, the timing was ripe for speculation. With public sentiment already souring following recent Xbox Game Pass subscription price hikes, and reports surfacing about Xbox hardware disappearing from US retailers like Costco, the community quickly jumped to the conclusion that the next Xbox was toast.

Microsoft was quick to douse the flames. Speaking to Windows Central on October 5 (local time), a spokesperson stated: "Microsoft is actively investing in future consoles and devices that we are designing, engineering, and building. We suggest you look back at our AMD partnership announcement for further confirmation."

Xbox President Sarah Bond announced back in June that they had secured a multi-year partnership with AMD to co-develop silicon—the brains of the operation—for a variety of future devices, including the next-gen Xbox. By reiterating that this collaboration is still very much alive, Microsoft is effectively telling us their hardware division isn't packing up shop just yet.

However, the fact that such a rumour gained so much traction in the US speaks volumes. It’s a clear symptom of a deeper malaise; gamers’ trust in Microsoft’s strategy is eroding, largely fuelled by those unpopular Game Pass price hikes. While the next Xbox is still in the works, winning back a cynical player base is going to be a much tougher battle for Microsoft than the engineering itself.