In 2025, the gaming world was shocked by former Xbox executive Laura Fryer's statement that "Xbox hardware is dead." This comment came after Microsoft announced a partnership with ASUS to launch the ROG Xbox Ally handheld. Many gamers and industry observers wondered: is Xbox really abandoning the hardware business and switching completely to digital services?
Loss of Xbox Exclusivity
One of Fryer's main criticisms is the loss of game exclusivity on the Xbox platform. In the past, Xbox was known for exclusive games like Halo, Gears of War, and Forza. However, with the "Xbox Anywhere" strategy, almost all Xbox games can now be played on PCs, even on competing consoles like PlayStation and Nintendo Switch. This makes there less and less reason to buy Xbox hardware. The exclusivity that used to be Xbox's main strength is now starting to fade.
Fryer also highlighted the slow development of Xbox exclusive games. Some big titles like State of Decay 3, Perfect Dark, and Fable have been in development for years with no clear release date. According to Fryer, this indicates a problem in the work culture and internal processes at Xbox. In the past, Xbox was known for being able to release games and hardware consistently, but now they are considered to have lost that advantage.
Focus on Digital Services
Microsoft has shifted its business focus to digital services such as Xbox Game Pass and cloud gaming. With Game Pass, players can access hundreds of games on various devices without having to buy an Xbox console. The partnership with ASUS to bring the ROG Xbox Ally handheld further emphasizes that Microsoft wants to expand the Xbox ecosystem to various platforms, not just consoles.
Many fans and former Xbox executives, such as Mike Ybarra, feel that Xbox's identity as a console is starting to blur. The public still thinks of Xbox as hardware, not just a service. If Microsoft moves too far away from hardware, there is a risk of losing the loyalty of longtime fans who have been loyal since the first Xbox era.
Is Xbox Hardware Really Dead?
Although Fryer called Xbox hardware "dead," Microsoft still has plans to release new devices. They just announced a multi-year partnership with AMD to develop the next generation of consoles. However, Microsoft's business direction is indeed leaning more towards services and open ecosystems, not the traditional console war anymore.
Microsoft's new strategy is generating pros and cons among gamers and industry observers. On one hand, the focus on digital services makes Xbox more flexible and accessible. On the other hand, the loss of hardware exclusivity and identity could make Xbox lose its main appeal. Will this strategy lead Xbox to a brighter future, or will it make it lose its identity? Only time will tell.
Source: WCCFTech
