Laura Fryer, an original Xbox founding member, suggests Microsoft's hardware ambitions may be fading. In a candid video reflecting on her experience launching the original Xbox and Xbox 360, she describes Xbox's current direction as "chaotic," questions whether flashy devices like the ROG Ally hold real value, and expresses concerns about Xbox's future.

"There's no compelling reason to purchase this handheld," Fryer stated regarding the ROG Xbox Ally. "As someone who helped build Xbox from the ground up, it's disheartening to see its legacy slowly diminish. From my perspective, Xbox seems unwilling – or perhaps unable – to continue producing competitive hardware. This partnership feels like the beginning of a gradual exit from hardware altogether. Honestly, I believe Xbox hardware is finished."

Fryer noted Xbox's increasing focus on driving subscribers to Game Pass, acknowledging its value while criticizing the $80 price tag for Outer Worlds 2. She questioned Xbox's long-term strategy, particularly as the brand approaches its 25th anniversary.

"Perhaps this approach will succeed," she mused. "Xbox owns an impressive catalog. The Oblivion Remastered proved there's still money in revisiting classics from Xbox's golden era. But where are the new system-sellers? What will maintain fan excitement for the next 25 years?"

"Next year's anniversary will undoubtedly bring major announcements. Maybe clarity will emerge then. Maybe we'll finally understand the vision behind these recent decisions. Only time will tell..."

Recent reports indicate Microsoft may be preparing significant layoffs across its gaming division, potentially starting this week. Sources suggest management has already been briefed about Xbox-specific reductions and broader company-wide cuts, particularly affecting sales teams.

The Verge reported these gaming division layoffs precede Microsoft's next-generation console development, following its partnership announcement with AMD for future Xbox hardware. Microsoft hasn't yet disclosed release timelines for upcoming devices.