Xbox Dropping Hardware And Exclusive Games Could Be Good For Business, Former Exec Says

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Xbox has faced a lot of recent speculation about the future of its consoles, with rumors suggesting Microsoft might stop making them. While Microsoft has stated these reports are false, former executive Mike Ybarra recently suggested that focusing less on console hardware and exclusive games could be a smart move for the company right now.

According to Ybarra, Microsoft’s decision to use Windows instead of the Xbox operating system on the new ROG Ally X is logical. He thinks this reflects Microsoft’s shift away from creating its own gaming hardware and exclusive games.

Ybarra explained that consoles need their own operating systems for things like ease of use and security. He believes a publisher embracing Windows is key, as most people would likely pirate games on those devices without a platform like Steam. He pointed out that Steam actually *reduces* piracy because it’s easy to use and offers good refunds, unlike Windows, which he admits isn’t a perfect system.

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Microsoft stopping production of its own gaming hardware might actually be a positive move, but only if they create compelling games and release them on platforms like Steam, PlayStation, and Nintendo. Whether or not they can do that remains to be seen, according to Ybarra.

Honestly, I think it’s crazy to keep making consoles when all the games are ending up on all platforms anyway. If they *wanted* to turn things around, they’d need to focus on exclusive titles again, build amazing hardware even if it meant losing money, and really try to become the center of everyone’s entertainment. But that doesn’t seem to be their plan, and that’s okay, I guess. It’s just… they keep being so indecisive, stuck in the middle, and it feels like it’s actually hurting them for no good reason.

Like Sony and Nintendo before, Microsoft used to make games only for its own consoles to encourage people to buy them. However, Microsoft recently began releasing its exclusive games on competitor platforms, and has been expanding this practice. Early results suggest it’s a successful strategy, with Xbox games currently topping sales charts on PlayStation.

According to Ybarra, Microsoft needs a well-defined plan to decisively move forward and concentrate on getting things done. He believes that without this clear direction, the gaming division is suffering from many small issues that are collectively damaging, rather than one major problem.

He explained that needles felt worse than cuts. It felt like the needles were constantly being pushed in further, and unlike cuts which heal, he wasn’t seeing any improvement – just more and more needle punctures going deeper.

Ybarra criticized Microsoft’s “This is an Xbox” ad campaign, which highlights that people can play Xbox games on devices they already have, not just the Xbox console. He bluntly stated the campaign was a mistake, launched at the wrong moment.

Xbox is fundamentally about gaming, and great games are the most important thing. If the experience isn’t consistent between the console and other devices, it doesn’t feel like a true Xbox. The person who suggested this approach clearly isn’t a gamer, it’s a confusing idea.

Sarah Bond, president of Xbox, recently revealed to Variety that Microsoft is working on new gaming hardware. This news comes after Microsoft announced a long-term partnership with AMD.

We constantly pay attention to what players and creators are asking for, and we’ll develop new features when we see a clear need for them.

Recently, Microsoft has received criticism for raising the price of Xbox Game Pass Ultimate by 50%, which is making the subscription less attractive to some players. In addition, the company has reduced its workforce, shut down some game development studios, cancelled planned games, and formed a partnership with Israel’s Ministry of Defense. Microsoft is also investing heavily in artificial intelligence, committing billions of dollars to the field.

Mike Ybarra began his career at Microsoft in 2000 as a systems engineer and eventually became a corporate vice president at Xbox after nearly two decades. In 2019, he moved to Blizzard Entertainment, serving as its president until May 2024. Currently, he is the CEO of PrizePicks, having joined the company later that year.

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2025-10-20 17:12