Xbox Co-Founder Laura Fryer Says Xbox Hardware Is Dead, Criticizes Microsoft's Direction

Redmond, WA — In a striking statement that’s sending ripples through the gaming community, Laura Fryer, one of the original members behind Microsoft’s Xbox initiative, has declared that Xbox hardware is effectively "dead." Fryer, who played a pivotal role in launching the Xbox brand and produced iconic titles like Gears of War, voiced her concerns about the current direction of the platform in a recent video interview.

Fryer accused Microsoft of drifting away from its hardware roots, despite public claims to the contrary. She cited the company’s increasing focus on services like Game Pass and third-party devices such as the ROG Ally—a handheld gaming console co-branded with Xbox—as clear signs of a shift.

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

Fryer criticized Microsoft’s "Xbox Anywhere" marketing approach, calling it “style without substance.” She argued that newer devices like the ROG Ally fail to capture consumer interest and do not represent meaningful innovation in the hardware space.

“It looks like Xbox has no desire—or literally can’t—ship hardware anymore. This ROG Ally partnership looks like a slow exit from the hardware business completely,” Fryer added.

According to Fryer, the company is now fully steering players toward Game Pass—a subscription-based platform offering hundreds of games for a monthly fee. She pointed to the recently announced $80 price tag for The Outer Worlds 2, suggesting it may be part of a deliberate pricing strategy to boost Game Pass subscriptions.

“I think Xbox hardware is dead,” she said. “The plan appears to be to just drive everybody to Game Pass. And let’s be clear—it has a lot of value. Maybe that’s why they decided to charge $80 for Outer Worlds 2. And here’s the thing—maybe it will work.”

Despite Xbox’s continued ownership of popular franchises and IPs, Fryer expressed uncertainty about the long-term sustainability of the brand’s current direction.

Her comments come at a time when Microsoft is rumored to be preparing layoffs in its Xbox division, as part of a broader corporate reorganization. According to sources, the restructuring is expected to be announced as early as next week.

Microsoft has not responded publicly to Fryer’s remarks or to reports of internal changes.