Former Microsoft exec says Xbox hardware “is dead”, but is this the case?

The Xbox has been one of the major players in the gaming arena since the first Microsoft console was launched back in 2001. And now that the original console is nearing its 25th birthday, former Microsoft executive Laura Fryer, who was part of the original Xbox console team, has come forward to say that “Xbox hardware is dead”.

In a YouTube video posted recently (via wccftech.com), Fryer commented on the upcoming launch of the ROG Xbox Ally, a handheld gaming device bearing the Xbox logo made in collaboration with Taiwanese company ASUS.

“Is there going to be a game so compelling that it drives me to adopt this new handheld? Well, here’s the problem. Xbox doesn’t do exclusives anymore. Even if Xbox delivers a crazy great game, Xbox Anywhere means that I can play that game on any platform”, said the former Microsoft Xbox.

She also commented on how Game Pass is the key to Microsoft’s gaming strategy and not the Xbox console hardware. “This partnership [with ASUS] is about a slow exit from the hardware business completely. Personally, I think Xbox hardware is dead. The plan appears to be to just drive everybody to Game Pass”, added Fryer.

An Xbox-branded handheld by ASUS is coming later this year.

But is Xbox hardware really dead?

The truth is that the Xbox console has been in decline ever since the launch of the Xbox One. After the highly successful Xbox 360 generation, Microsoft botched the launch of the Xbox One with bad marketing and other things.

It seemed, though, that the Redmond giant would make a comeback with the Xbox Series X/S. And although these consoles have sold more than 30 million units to date (according to unofficial figures on vgchartz.com), this pales in comparison to Sony’s PS5, which has surpassed the 75 million units sold mark.

Part of the problem, no doubt, is Microsoft releasing two different Xbox Series consoles – the Xbox Series X and Xbox Series S. This is because while the Xbox Series X is slightly more powerful than a PS5, and features a disc drive, the Xbox Series S is slightly less powerful than the PS4 Pro (a last generation console), and doesn’t feature a disc drive.

This creates a problem for game developers, as any game that runs on the Xbox Series X must also work on the Xbox Series S, a significantly less powerful console. Game developers like Larian Studios (the people behind Baldur’s Gate 3) and Game Science (the people behind Black Myth: Wukong) have bemoaned about this.

Sony, meanwhile, released both a PS5 and a PS5 digital console, both being just as powerful, the only difference being one comes with a disc drive, the other does not. And with the release of the PS5 Slim in 2023, it is now possible to add a disc drive to the digital PS5 Slim too…

There’s also the fact that Sony’s console has plenty of worthwhile exclusives, including the upcoming Ghost of Yotei, a sequel to 2020’s Ghost of Tsushima game. On the other hand, Microsoft has started bringing more of its catalog of games to PS5 – Indiana Jones and the Great Circle and Forza Horizon 5 are now on PS5, and it’s rumored Starfield will be coming to Sony’s console in the near future too.

Xbox exclusives like Indiana Jones and the Great Circle are hitting PS5, with more to follow.

These are reasons for the dwindling sales of Xbox consoles, but there’s also the matter of Microsoft’s price increases for its Xbox consoles (due to US tariffs and other factors) meaning an Xbox Series X or S ends up being more expensive than the PS5 Slim or PS5 Slim digital edition in some regions as one Forbes contributor has pointed out…

Actually, it’s as if Microsoft has lost interest in shifting Xbox hardware, and yet a new, next-gen Xbox console will be hitting the shelves in the future, likely in 2027. Apparently Microsoft’s CEO has greenlighted a successor to the Xbox Series X (via IGN) already.

The exact capabilities of this console are still unknown, but Microsoft has already reached an agreement with technology company AMD to provide the chips. The machine, though, will be even more PC-like, being able to run storefronts like Steam and the Epic Games Store according to rumors… This means Microsoft is doubling down on its “play anywhere” and “everything is an Xbox” strategy, likely completely forgoing exclusives, so it would seem Xbox hardware is indeed going to disappear sooner or later…

The thing is, Microsoft is one of the largest companies in the world (much larger than Sony), and can afford to keep pumping Xbox consoles out for the foreseeable future. Former vice president of the Xbox division Mike Ybarra said on X (in response to a question about Microsoft’s “everything is an Xbox” strategy) that if “you ask anyone on the street what Xbox is and 99% of the time they say a video game console. That is the identity”.

And it’s clear that Xbox consoles are particularly appealing for some, especially those without gaming PCs looking for a PC-like gaming experience, so there’s likely going to be demand for Xbox hardware in the near future.

So saying that Xbox hardware “is dead” right now is something of an exaggeration, as people will likely keep buying these consoles generation after generation as long as Microsoft keep making them, that is…