A key figure from the original Xbox development team has publicly questioned Microsoft's ongoing commitment to its console hardware division. These concerns emerge as Microsoft increasingly focuses on multiplatform game releases and third-party hardware collaborations, signaling a potential strategic shift away from first-party console development.

Microsoft's transition toward multiplatform publishing became evident in early 2024 when titles like Pentiment made their way to PlayStation and Nintendo Switch. This was followed by other major Xbox exclusives including Hi-Fi Rush and Sea of Thieves appearing on competing platforms. The company further reinforced this direction by announcing partnerships with Asus and Meta for Xbox-branded devices in mid-2025.

Laura Fryer, an Xbox founding member and former director of the Xbox Advanced Technology Group, recently shared her critical perspective on Microsoft's evolving strategy. In a YouTube video published June 28, Fryer argued that Microsoft appears to be prioritizing easy solutions like branding third-party hardware over developing innovative in-house consoles.

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"I believe Xbox hardware as we knew it is finished," Fryer stated, pointing to Microsoft's growing emphasis on Xbox Game Pass. She highlighted the company's recent pricing strategy, including an unprecedented $80 price tag for The Outer Worlds 2, as evidence of a push toward subscription-based gaming rather than traditional hardware and software sales.

While acknowledging Microsoft's extensive intellectual property portfolio and recent successes like Oblivion Remastered, Fryer questioned the long-term viability of the current approach. "What will drive consumer interest in Xbox decades from now?" she asked, emphasizing the need for new hit franchises and innovative hardware to maintain brand relevance.

Despite these concerns, industry reports suggest Microsoft may still have one more console generation in development. Rumors indicate a PC-like next-gen Xbox designed for TV compatibility, potentially launching alongside PlayStation 6 in 2027-2028. However, Microsoft's previously announced handheld console project appears to have been abandoned in favor of partnerships with hardware manufacturers like Asus.