Xbox Hardware is Dead, Says One of the First Employees of Microsoft Game Studios

According to a former member of the original Xbox team, Microsoft appears to be subtly phasing out its gaming hardware division as it broadens the scope of the Xbox brand. In a recent discussion, ex-Microsoft Game Studios employee Laura Fryer shared her perspective on how Microsoft’s recent strategies might impact the future of Xbox.

In her video, Fryer discusses extensively how Microsoft is promoting the “Xbox Anywhere” label for services such as Game Pass and Xbox Cloud. These services enable subscribers to play games on a wide range of devices they own (excluding PlayStation and Nintendo consoles). As Fryer notes, Microsoft has been aggressively partnering with other hardware manufacturers to produce Xbox-themed gaming systems.

According to Fryer, Microsoft is heavily relying on Game Pass and allowing Asus to handle the hardware development for devices like the ROG Xbox Ally and Xbox Ally X. This move wasn’t unexpected, as producing hardware can be costly. It’s more straightforward to affix an Xbox logo to an existing device rather than investing significant resources in innovation. If Microsoft is no longer focused on console sales or exclusive games, there seems little reason to push for hardware advancements.

Towards the end of the video, Fryer expressed her dismay towards Microsoft’s decision regarding their Xbox brand strategy. In her viewpoint, Microsoft appears to be giving up on designing their own hardware.

Clearly, being one of the original members of the Xbox team, I’m not content with how things are currently unfolding,” she expressed her feelings. “It’s disheartening to witness the worth that I contributed dissipate gradually. From my point of view, it seems like Xbox is either losing its drive or unable to manufacture hardware anymore. This [ROG Ally] partnership, therefore, appears to be a step towards completely phasing out from the hardware business.

In essence, Fryer posits that while Xbox may no longer be a focus for gaming hardware, Microsoft seems to be promoting Game Pass as the future, given their strategy of pricing upcoming games like The Outer Worlds 2 at $80.

In their own words, Fryer expressed the belief that Xbox’s hardware may no longer be in production. This seems to indicate a strategy of pushing everyone towards Game Pass, a service with substantial benefits. It is speculated that this could be the reason behind the high price of $80 for Outer Worlds 2. However, there is still a possibility that this approach might prove successful.

Xbox boasts a rich collection of titles. The reimagined version of Oblivion proved to be incredibly profitable, allowing them to farm out production to external studios and rake in profits by re-releasing their classic games. These games hark back to an era when Xbox had mastered their craftsmanship.

However, I’m curious about the future strategy. Where are the upcoming games? What can make Xbox relevant 25 years from now? I was thrilled to see Clockwork Revolution in the presentation, but will that be sufficient? Are there more exciting announcements coming?

In a recent discussion, Fryer mentioned that as Xbox approaches its 25th anniversary (the first model was launched in 2001), it’s reasonable to anticipate some significant plans from Microsoft. Yet, she appeared less optimistic about the possibility of Microsoft unveiling new hardware to celebrate the classic console.

As a passionate fan, I can’t help but feel excited about next year. It’s going to be the 25th anniversary of Xbox, and I’m hoping for some major revelations that will truly honor this milestone. Could it be the year when the fog finally lifts, allowing us all to appreciate the beauty in these upcoming announcements? Only time will tell.

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2025-06-30 17:41