All these changes and the current state of Xbox have caused a few former executives to speak out about the situation.

The first is Laura Fryer, who released a 13-minute video titled “The Future of Xbox” addressing the issues. Fryer is a former Xbox executive and was part of the team that created the original Xbox console. Here’s what she specifically said regarding hardware:

“It's one year from the 25th anniversary of the Xbox, and it looks like they're abandoning almost everything that made the Xbox brand great initially,” Fryer stated. “Let's start with the handheld announcement. I've seen mixed reactions, and that has me really confused because I don't see any reason why someone would buy this piece of hardware. Just like the original Xbox, it's built on Windows—a slimmed-down version of Windows—but it's still Windows. So, this isn't something new.”

“There is literally no justification for buying this handheld. Obviously, as one of the founding members of the Xbox team, I'm not happy with where things stand today. I don't enjoy watching all of the value that I helped create slowly disappear. I'm disappointed because, from my perspective, it seems like Xbox either doesn’t want or can’t produce hardware anymore. This partnership feels like a gradual exit from the hardware business entirely. Personally, I believe Xbox hardware is finished. The strategy seems to be pushing everyone toward Game Pass.”

"Tough to see Xbox unclear about its identity and direction. Some excellent people remain there. They need to figure out what needs changing … and quickly. I’m a supporter and will always feel connected to Xbox. Cheering the team on from afar. Choose your path and stick to it."

“You're buying into it too much. Ask anyone on the street what Xbox is and 99% of the time they’ll say a video game console. That is the brand identity. End of story.”

Even current Xbox executives such as Phil Spencer have admitted that Xbox has lost the console war, which explains their shift toward cross-platform distribution, cloud streaming, and expanding Xbox Game Pass.

From the outside, it’s easy to spot the flaws in this plan, including those highlighted by Fryer and Ybarra. Microsoft has started labeling non-Xbox devices as Xbox-related, such as the handheld, and recently entered a temporary VR collaboration. They’re banking on promoting cloud streaming across other platforms. They’ve raised Xbox prices so high due to tariffs that it almost seems like they don’t want to sell hardware. They insist they will build another console generation after this one and have already hinted at it, but other elements of this strategy—like giving most or all first-party games to PlayStation and continuously pushing Game Pass despite hitting a subscription limit—are causing clear issues. It becomes even more concerning if former leaders are openly criticizing the approach.

Let’s hope these upcoming layoffs aren’t as severe as anticipated, and it’s evident that changes are needed. Again.

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