Xbox co-founder says hardware is dead

Laura Fryer, one of Xbox's original founding members, believes Microsoft's hardware ambitions have reached their end.

In a recent video reflecting on her tenure shipping the original Xbox and Xbox 360 consoles, Fryer describes Microsoft's current strategy as "chaotic," questions whether the flashy new ROG Ally lives up to the hype, and speculates about Xbox's future direction.

"This handheld offers no compelling reason for purchase," Fryer stated regarding the ROG Xbox Ally. "As someone who helped build Xbox from the ground up, I'm deeply disappointed with the current trajectory. Watching the value we created slowly diminish is painful. From my perspective, Xbox appears either unwilling or unable to continue producing hardware. This partnership signals Microsoft's gradual withdrawal from the hardware market entirely. Frankly, I consider Xbox hardware dead."

Fryer noted Xbox's increasing focus on driving subscribers to Game Pass, acknowledging its value proposition while questioning Microsoft's long-term vision - especially with Xbox's 25th anniversary approaching.

"Here's the reality - this strategy might actually succeed," she continued. "Xbox possesses an extensive back catalog. The Oblivion Remastered proved wildly successful, demonstrating Microsoft can profitably outsource legacy content development.

"But where's the forward-looking strategy? Where are tomorrow's hit franchises? What will make Xbox relevant for another quarter century?

"As we approach Xbox's silver anniversary next year, I anticipate major announcements commemorating this milestone. Perhaps clarity will emerge then. Maybe we'll finally understand the vision behind these recent moves. For now, we'll have to watch and wait..."

Recent reports indicate Microsoft plans significant gaming division layoffs potentially occurring this week. Sources suggest Microsoft managers have already received briefings about impending Xbox job cuts, with sales teams expected to face particularly deep reductions.

The Verge reported these workforce reductions precede Microsoft's next-gen console launch. This follows Microsoft's partnership announcement with AMD to power future Xbox systems, though the company hasn't revealed specific launch timelines.