Former Blizzard president Mike Ybarra, who also served as a Microsoft executive, recently generated significant industry discussion by boldly stating that Xbox consoles are effectively 'dead' while simultaneously applauding Sony's recent accomplishments with the PS5. With two consecutive price increases and sales figures continuing to decline throughout 2025, Xbox's console division appears to be facing its most challenging period in recent memory.

When Microsoft launched its current-generation Series X/S consoles in 2020, the company seemed well-positioned for market dominance. The strategic advantages included Xbox's expanding portfolio of first-party development studios, competitive initial pricing structures, and the compelling value offered by the Game Pass subscription service. However, Sony's PS5 successfully maintained the positive commercial momentum established by its predecessor, the PS4, resulting in over 80.3 million units sold and maintaining its position as the leading current-generation platform. Meanwhile, consumer demand for Xbox hardware has diminished to the point where Microsoft has reported declining Series X/S sales for more than twelve consecutive quarters. The company's recent strategy of porting exclusive Xbox titles to PS5 has been interpreted by many industry observers as an implicit acknowledgment of shifting priorities in the console marketplace.

Sony's announcement last year revealing that the PS5 had become the most profitable console generation in the company's history, accumulating $106 billion, set the stage for current industry discussions. During Tokyo Game Show 2025, Sony reinforced this narrative by updating the figure to an impressive $136 billion. Former Blizzard president Mike Ybarra responded to this news on social media, congratulating Sony while adding, "But hey, the console market isn't a successful business. It is if you do it right." This statement appears to be a pointed critique directed at those who argue that dedicated home consoles have become outdated in the evolving gaming landscape. When another user referenced Ybarra's previous employment at Microsoft in a reply, the industry veteran responded bluntly with the declaration, "Your console is dead."

Although Ybarra didn't explicitly name Xbox in his response, the implication was unmistakable given that both Sony and Nintendo continue to experience robust hardware sales. In a separate social media exchange, Ybarra also criticized Microsoft's "Everything Is An Xbox" marketing initiative, suggesting that the campaign reflects a "confused" brand identity. Ybarra departed from Blizzard in early 2024, just months after Microsoft completed its acquisition of Activision Blizzard King, and has since become increasingly vocal in his critiques of his former employer. Most recently, Ybarra strongly criticized Microsoft for implementing a second round of Xbox price increases, implying that the decisions were driven by profit margin considerations rather than external economic factors like tariffs.

Ybarra brings substantial industry credibility to his commentary, having spent two decades at Microsoft before departing in 2019 as Xbox's corporate vice president, followed by a five-year tenure at Blizzard. While some might find his critical stance toward Xbox surprising given his professional background, he isn't alone in expressing concerns about Microsoft's gaming strategy. Earlier this year, Laura Fryer—a founding member of the original Xbox development team—also voiced serious concerns about the platform holder's future direction. Fryer similarly questioned the viability of Xbox hardware and Microsoft's long-term strategic planning for the brand, creating a remarkable alignment between two industry veterans with deep Xbox institutional knowledge.

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