Microsoft has decided to discontinue manufacturing of new Xbox One X and Xbox One S All-Digital Edition units several months before the launch of its new console.
Per a statement to The Verge, this is a strategic move as the company moves forward to the next generation. A Microsoft spokesperson stated, “As we ramp into the future with Xbox Series X, we’re taking the natural step of stopping production on Xbox One X and Xbox One S All-Digital Edition.”
However, Microsoft will continue production of new units of Xbox One S globally. Due to the global COVID-19 pandemic, the demand for video game consoles has increased, causing some supply issues. However, retailers should still have units of the discontinued consoles for some months to come.
NPD video game industry analyst Mat Piscatella chimed in with some additional context, explaining why it makes sense for Microsoft to slim down its production of its current-generation console versions:
In the US, the big surge in hardware demand starting in March has led to a number of SKUs across mfgs to sell out. Makes sense to let them stay sold out and focus replen on a smaller number of SKUs leading into next-gen. So if you wanted a deal on PS4/Xone this summer… sorry. https://t.co/vKdWCZ7y0H
— Mat Piscatella (@MatPiscatella) July 16, 2020
Microsoft is holding its Xbox Games Showcase on July 23, featuring a straightforward hour-long presentation of just games coming to the Xbox Series X. Microsoft also announced today that its cloud gaming streaming service, xCloud, will be free for all Xbox Game Pass Ultimate members beginning in September.