Xbox no longer has any ambitions to develop hardware. This is what Laura Fryer, former executive producer at Microsoft Games Studios and one of the founders of the original console team, says: “Personally, I think Xbox hardware is dead.”
You may have followed the two big news in the Xbox world in recent weeks: the partnership with AMD to manufacture the chips for the next generation of consoles and, a little earlier, the launch of the ROG Xbox Ally and Ally X portables , in collaboration with Asus — both reported here on Tecnoblog .
These announcements were precisely the trigger for Fryer to criticize the direction the brand had taken. Before pursuing a career at Epic Games in 2012, she participated in the creation of the first Xbox and the Xbox 360.
Innovation in the hands of partners
The criticism was made in a nearly 13-minute video published on her channel last Saturday (28/06). She claims that the new portable devices are a sign that Microsoft has lost the ambition — or even the ability — to launch its own consoles with the Xbox division.
In Fryer’s view, the devices offer no real reason to buy, as they are essentially Windows 11 laptops made by Asus. “Unfortunately, I don’t think marketing is going to cut it,” he says. “There is literally no reason to buy this laptop.”
“As one of the founding members of the Xbox team, I am not happy with the way things are going. I don’t like seeing all the value I helped create slowly being destroyed. I am saddened that, from my perspective, it seems like Xbox no longer wants to — or can’t — ship hardware.
This partnership [with Asus] seems like a slow exit from the industry. Personally, I think Xbox hardware is dead. The plan seems to be to just get everyone onto Game Pass.”
Laura Fryer, former executive producer at Microsoft Games Studios and co-founder of Xbox
The veteran recalls that the brand’s success has always been based on developer support, good tools and exclusive, heavyweight games — pillars that, according to her, have been lost over time. “During the presentation [of the handhelds], several games in development were not even mentioned, such as State of Decay 3 , Perfect Dark and Fable ,” she says. “Many have been in production for more than five years.”
According to her, the current strategy is clear: “They are betting everything on Game Pass and leaving the hardware innovation in the hands of partners.” Xbox turns 25 in 2026, but Fryer questions the future of the brand: “Where are the new hits? What will make people still care about Xbox 25 years from now?”
Microsoft prepares round of layoffs in Xbox division
As Tecnoblog reported, the Xbox division is expected to undergo more changes soon with a new round of layoffs . The decision would be linked to internal pressure for higher profit margins, especially after the incorporation of Activision Blizzard.
In January 2024, around 1,900 employees linked to Xbox and Activision Blizzard were laid off, just months after the publisher’s $69 billion acquisition was finalized. If confirmed, this would be the fourth major round of layoffs at the division in just 18 months.
Last month, Microsoft laid off more than 6,000 employees — about 3% of its global workforce.
