Laura Fryer, one of the original founding members of the Xbox team, has expressed a stark belief: the company’s hardware ambitions are “dead.” Her candid assessment, shared in a recent video, paints a grim picture of Xbox’s current trajectory, describing its roadmap as “chaos” and questioning its future in the console market.
“Xbox Hardware Is Dead”: A Blunt Assessment
Fryer, reflecting on her experience shipping the original Xbox and Xbox 360, did not mince words when discussing the current state of affairs. She openly questioned the value proposition of devices like the ROG Ally, stating, “There is literally no reason to buy this handheld.” Her disappointment stems from a perceived erosion of the value she helped create. “I don’t love watching all of the value that I helped create slowly get eroded away,” she lamented.
From her vantage point, Fryer believes that “Xbox has no desire or literally can’t ship hardware anymore.” This leads her to conclude that recent partnerships and strategic shifts indicate “a slow exit from the hardware business completely.” Her ultimate, unequivocal declaration: “Personally, I think Xbox hardware is dead.”
Game Pass Focus: A Questionable Long-Term Strategy?
Fryer acknowledges Xbox’s current focus on driving subscriptions to Game Pass, recognizing the “value” in this strategy. She even speculates that this focus might explain the $80 price tag slapped on Outer Worlds 2. However, despite acknowledging the immediate benefits of Game Pass, she raises a fundamental question about the company’s long-term vision, especially with the Xbox’s 25th anniversary approaching.
She concedes that the Game Pass strategy “maybe will work,” pointing to Xbox’s “deep portfolio” and the success of outsourced work like Oblivion Remastered. This allows them to “make a lot of money releasing their older games older games from an era when Xbox knew how to build them.” Yet, this leads to a critical inquiry: “But what is the long-term plan? Where are the new hits? What will make people care about the Xbox 25 years from now?”
The 25th Anniversary and an Uncertain Future
With the 25th anniversary of Xbox looming next year, Fryer anticipates “some big announcements and plans for honoring the milestone.” She expresses a glimmer of hope, pondering, “Maybe next year is the year. Maybe next year is the year that the fog will clear, and all of us will see the beauty in these latest announcements. I guess we’ll just have to wait and see…” This sentiment encapsulates the uncertainty surrounding Xbox’s future direction in the eyes of one of its original architects.
Adding to the somber outlook, recent reports indicate that Microsoft is allegedly planning significant layoffs within its gaming business, potentially as early as this week. Managers at Microsoft have reportedly been briefed on these Xbox-specific cuts, as well as broader reductions across the company, particularly impacting sales teams.
The Verge reported that these gaming business cuts are planned ahead of the release of Microsoft’s next generation of consoles. This comes after Microsoft announced a partnership with AMD to power the next generation of Xbox, including its future first-party Xbox consoles. Microsoft has yet to disclose the launch date for these new devices. The timing of these layoffs, coupled with Fryer’s assessment, paints a concerning picture for the future of Xbox hardware.