Former exec says Xbox’s hardware ‘is dead’ and the brand has lost its soul

Microsoft’s Xbox strategy has taken some unexpected turns lately. After years of focusing on exclusives and Xbox Game Pass, the company has started pushing games like Forza Horizon 5 to PlayStation.

That’s not all; Microsoft recently launched Xbox-branded ROG Ally. It also announced a multi-year deal with AMD to develop the next generation of Xbox consoles. But while the future looks ambitious on paper, not everyone’s impressed.

Former Microsoft Games Studio executive producer Laura Fryer recently posted a YouTube video titled The Future of Xbox, sharing her take on where the brand is headed. Make no mistake, Fryer didn’t hold back.

She flat-out said Microsoft’s hardware business “is dead,” and claimed the company is slowly exiting the space despite its flashy announcements. She pointed to the Meta Quest 3S Xbox Edition as an example, calling it more of a marketing move than meaningful hardware.

Fryer also admitted she’s never been a fan of Windows and switched all her personal devices to Linux after leaving Microsoft over 15 years ago. Therefore, the new Windows handhelds don’t impress her either.

Her biggest concern is that Xbox has lost its identity. She believes the brand no longer focuses on hardware that truly matters to players, and that the broader plan is just to funnel users into Game Pass through partner devices. In her view, Xbox has lost its “soul.”

This comes at a time when Microsoft is reportedly preparing layoffs in its Xbox division, adding more uncertainty to what’s next for the platform. Fryer’s take may be personal, but the questions she’s raising are echoing across parts of the Xbox fanbase.