A founding member of the original Xbox project has voiced concerns that Microsoft is effectively abandoning its console hardware business. This platform skepticism was articulated alongside some reservations about the long-term viability of the current Xbox content strategy.

Faced with weak hardware sales and after spending billions on developer acquisitions, Microsoft officially started shifting toward multi-platform game publishing in February 2024, when it ported Obsidian’s Pentiment to the latest two PlayStation consoles and the Nintendo Switch. Hi-Fi Rush, Grounded, and Sea of Thieves went multi-platform over the next couple of months, whereas Forza Horizon 5 and Indiana Jones and the Great Circle followed suit a year later. Over the course of June 2025, Microsoft announced two third-party Xbox devices: the Asus ROG Xbox Ally X and the Meta Quest 3S Xbox Edition, further signaling a diminishing focus on in-house gaming hardware.

Related Rumor: Xbox’s Own Handheld is ‘Essentially Canceled’ A reliable source alleges that Microsoft has shelved the long-rumored in-house Xbox handheld console in favor of third-party collaborations.

This strategic pivot has recently invited scrutiny from Laura Fryer, one of the founding members of the Xbox project and the former director of the Xbox Advanced Technology Group. In a June 28 video posted to her YouTube channel (via TheGamer), the industry veteran dissected Microsoft’s evolving vision for Xbox, positing that “it’s much easier to slap an Xbox sticker on an existing piece of hardware”—like the recently announced Asus ROG Xbox Ally X—”and call it a day” instead of trying to make something in-house.

Fryer Thinks ‘Xbox Hardware Is Dead’

“I think Xbox hardware is dead,” Fryer says in her latest video commentary, noting that Microsoft appears to be going all in on Xbox Game Pass. She pointed to the fact that Microsoft just announced the first-ever $80 Xbox game—The Outer Worlds 2—as some concrete recent evidence that the group is simply trying to drive everyone to its subscription service instead of selling them titles outright.

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Fryer Questions Xbox’s Long-Term Relevance

Fryer acknowledged that Microsoft has a vast IP library and could plausibly make this strategy work, at least for a while. She noted the recent success of Oblivion Remastered as a signal Microsoft can continue outsourcing modernized versions of its games from an era where it “knew how to build them,” making a lot of money in the process. At the same time, she expressed skepticism about how viable this approach is beyond the immediate future. “What is the long-term plan, where are the new hits, what will make people care about the Xbox 25 years from now?” the former Microsoft executive with 11 game producer credits to her name asked rhetorically.

What is the long-term plan, where are the new hits, what will make people care about the Xbox 25 years from now?

While Fryer’s perspective of first-party Xbox hardware being dead may yet be proven correct, Microsoft is rumored to be working on at least one more attempt at an in-house console. According to recent insider reports, the next-gen Xbox will effectively be a PC in a TV-friendly shell. It’s rumored to arrive between late 2027 and 2028, same as the PS6. However, the handheld console that Microsoft Gaming CEO Phil Spencer previously confirmed was being prototyped is believed to have been shelved now that the company is pivoting to portable gaming OEM partnerships.

Sonic Team boss Takashi Iizuka has told fans not to expect remakes of classic entries in the Sonic Adventure series anytime soon.

Sonic Adventure (1998) and its sequel (2001) remain two of the Sega mascot’s most beloved 3D adventures and introduced open-world elements to the series for the first time.

Speaking in a recent interview with Shack News, Iizuka, who directed both Dreamcast Sonic Adventure games, was asked about the possibility of bringing the series back as remakes or remasters, but said that he’d rather put the energy required into making entirely new titles.

“I am really appreciative of everyone who likes the Sonic Adventure series, but when I think about what it would take to bring that game up to the standards and expectations of what the modern gaming audience would want, I think it would be about as much time and energy as it would to make a new title,” he said.

“So part of me is thinking maybe I should just make a brand new title and that’s why there are currently no plans.”

VGC previously asked Iizuka in 2022 if he had any desire to continue the Sonic Adventure series with a potential third game. At the time, he said there were no such plans, but he did confirm a desire to one day revisit the series.

“In the future, yes, Sonic Adventure 3 is there as an idea that at some point it would be cool to maybe explore, but that’s not part of the plan and that’s not what I’m doing. It’s all about Frontiers [right now] and we have no plans for Sonic Adventure 3 at this point. I just want to be clear with everyone!

“But yeah, as somebody who made Sonic Adventure 1 and 2, it is on my mind as some idea that I could potentially think about in the future.”

One of the founders of Microsoft’s console endeavours has shared her criticisms of Xbox’s ongoing strategy. Laura Fryer, who worked at Microsoft from the late 1990s to the late ’00s, says that she is “not pleased” with what is being done to the brand, and believes Xbox’s console business is “dead”.

As spotted by VGC, Fryer made these comments in a YouTube video about the future of Xbox. Here, she is critical of Xbox’s hardware plans, particularly the ROG Xbox Ally handheld, which she calls “style with no substance”.

Xbox Is Dead, Says Microsoft Veteran Dev

Fryer opens the video by complaining about the Xbox Anywhere marketing strategy, in which the company showcases all of the various platforms on which you can play its games.

“It’s style, not substance,” says Fryer. “Just because you say something, it doesn’t mean you can do it, and it doesn’t mean that you won’t change your mind. After all, Xbox has been pivoting a lot lately.”

The video then breaks down her concerns with the Xbox Ally joining this Xbox Anywhere campaign, as she feels that there is no unique selling point to the console, like Xbox used to offer through its exclusive games. As for the portable element, she argues that the Steam Deck already fills the niche better by having more variety and freedom.

“Obviously, as one of the founding members of the Xbox team, I’m not pleased with where things are today,” she continues. “I don’t love watching all of the value that I helped create slowly get eroded away.

“I’m sad because from my perspective, it looks like Xbox has no desire or literally can’t ship hardware anymore. So this partnership [with ROG Ally] is about a slow exit from the hardware business completely,” she continues. “Personally, I think Xbox hardware is dead.”

Fryer is hardly the first person to suggest that Xbox doesn’t have a future in the console market. Many have suspected that Microsoft will stop bringing out Xbox consoles in the future, instead focusing on its software output and Game Pass offerings. Xbox has denied this, and we already know that the follow-up to the Xbox Series X/S is in the works.

Bandai Namco has announced a Summer Showcase live stream for Wednesday, July 2.

The Bandai Namco Summer Showcase will include the announcement of a new My Hero Academia game, plus new looks at Towa and the Guardians of the Sacred Tree, and Digimon Story: Time Stranger, it said.

According to a teaser trailer, the showcase will also feature news for Code Vein 2, The Blood of Dawnwalker, Death Note: Killer Within, Everybody’s Golf: Hot Shots, Little Nightmares 3, Patapon 1+2 Replay, Shawo Labyrinth, Super Robot Wars Y, and Tekken 8.

The Bandai Namco Summer Showcase will take place on July 2 at 12pm PT / 3pm ET / 9pm CEST / 4am JST.

Bandai Namco recently begun teasing plans to announce a new Tales of remaster project.

The franchise’s last mainline release was 2021’s Tales of Arise, which was billed as “a new beginning” for the series.

The most recent series entry was Tales of Graces f Remastered, which was released for Nintendo Switch, PS4, PS5, Xbox One, Xbox Series X/S, and PC in January 2025.

Story Highlight Laura Fryer, a former member of the Xbox team, has criticized the company’s recent handheld.

She states that it serves no purpose, as it utilises existing hardware and runs Windows 11.

The handheld will not play console Xbox titles either, making it unappealing for most people, according to the former executive.

Microsoft officially announced the Xbox handheld earlier this month, and reactions to the new hardware have been mixed so far.

While fans appreciate the company’s attempt to branch out, others believe the handheld needs to offer more than just a tweaked ROG Ally experience. In fact, one of the founding Xbox members believes that nobody has a reason to buy this handheld.

Why it matters: Xbox’s decision to enter the handheld market appears natural after the success of the Nintendo Switch, but the company’s first step is more half-hearted than most expected.

Laura Fryer, a veteran of the original Xbox team, recently discussed Microsoft’s plans for the future. She noted that the team had previously focused on hardware innovation, alongside software support, as a key component of the business, and the ROG Xbox Ally shows a shift away from this trend.

As Laura Fryer points out, the handheld runs Windows and only supports Xbox Play Anywhere titles on PC. Therefore, console-only titles, such as Ninja Gaiden Black or Sonic Unleashed, will not be playable on the handheld.

This makes the hardware more akin to a Windows PC with a few specific Xbox features. The former Xbox team member argues that gamers may as well build a proper PC instead or invest in a Linux-based handheld, such as the Steam Deck.

Laura Fryer also noted that the ROG Ally itself is quite expensive, so choosing the Xbox ROG Ally over other options would not save gamers much money. For context, rumors suggest this handheld will start at €599.

She concluded the video by stating that the Xbox hardware division is essentially dead at this point.

There’s literally no reason to buy this handheld. As one of the founding members of the Xbox team, I’m not pleased. I think Xbox hardware is dead.

Interestingly, this is not the first time an executive has criticized the Xbox handheld. Previously, the Blizzard boss argued that Microsoft should focus on games instead of making unnecessary hardware.

What do you think about Laura Fryer’s assessment of the ROG Xbox Ally? Share your opinions on the handheld in the comments below, and visit the Tech4Gamers Forums for more interesting news.

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