Xbox Hardware Doomed, Says Co-Founder

Laura Fryer, one of Xbox's original founding members, claims the company's hardware ambitions are "dead."

In a recent video reflecting on her experience launching the original Xbox and Xbox 360, Fryer criticizes Microsoft's current strategy as "chaotic," questions whether the high-profile ROG Ally is truly groundbreaking, and speculates on Xbox's future direction.

"There’s absolutely no reason to buy this handheld," Fryer stated regarding the ROG Xbox Ally. "As someone who helped build Xbox from the ground up, I’m not happy with how things have evolved. It’s painful to see the value we created gradually fade. From where I stand, it seems Xbox has lost the ability—or maybe the will—to produce competitive hardware. This partnership feels like a slow retreat from the hardware business altogether. Honestly, I believe Xbox hardware is finished."

Fryer argues that Xbox is heavily pushing Game Pass, acknowledging its appeal (and possibly explaining the controversial $80 price tag for Outer Worlds 2), but she remains skeptical about the company’s long-term vision—especially as Xbox approaches its 25th anniversary.

"Here’s the thing—maybe this approach will succeed," she added. "Xbox has a strong catalog. The Oblivion Remastered release was undeniably successful, and they can keep outsourcing remakes of their classic titles—games from an era when Xbox truly understood game development."

"But what’s the long-term strategy? Where are the new blockbusters? What will keep Xbox relevant in another 25 years?"

"Next year marks Xbox’s 25th anniversary, and I’m sure there will be major announcements to celebrate. Maybe 2025 will finally bring clarity. Maybe we’ll look back and see the brilliance in these recent decisions. Only time will tell..."

Last week, reports surfaced that Microsoft could announce major layoffs in its gaming division as early as this week. Sources indicate that Microsoft executives have already been informed about Xbox-related job cuts, along with broader reductions expected to heavily impact sales teams.

The Verge noted that these restructuring efforts precede the launch of Microsoft’s next-gen consoles, following the company’s partnership with AMD to develop future Xbox hardware. However, Microsoft has yet to confirm a release timeline for its upcoming devices.