Ex-PlayStation boss hints Xbox consoles will die, with Microsoft prioritizing Windows

Former PlayStation Studios President Shuhei Yoshida has not been afraid to criticize Sony or Microsoft. His latest social media comment seems to make a dire prediction about the fate of Xbox consoles. He suggests, somewhat ambiguously, that Microsoft should focus on Windows gaming at the expense of its hardware.

Are Xbox consoles doomed?

Yoshida was likely responding to recent events, including impending layoffs at Xbox. He doesn’t see a bright future, at least for some aspects of its gaming business. The one-time Sony executive’s post reads, “Xbox will dissolve into Windows, and it’s MS’s strength…”.

Readers can only guess what Yoshida’s specific arguments are. Even so, CEO Asha Sharma's recommitment to hardware hasn’t convinced all skeptics. Some followers still expect Microsoft to become more reliant on gaming PCs.

There are many reasons to think that Microsoft will flee from the traditional console model. In 2025, it promoted the Asus-manufactured Windows handheld, the ROG Xbox Ally. Although a first-party alternative has been rumored, its release date and operating system are unclear.

Sharma has been less secretive about another new Xbox console, Project Helix. She has repeatedly stated that it would be able to boot Xbox games and PC titles. Accordingly, reports describe the AMD Magnus-based machine as a hybrid. There are strong indications that it will run on a version of the company’s popular OS.

Windows hasn't lured all couch gamers

Given the changes made to Windows 11, the system may not need many modifications. The Xbox PC app can now run in full-screen mode with controller support. Yet, critics still believe it doesn’t replicate a living-room experience.

Yoshida could also realize the economic difficulties of releasing a new Xbox console. PlayStation has a massive advantage with its user base, and the memory shortage complicates efforts to close the gap. There are rumblings that Microsoft was ill-prepared for the crisis, which threatens Project Helix as well.

Given these challenges, after laying the groundwork, Microsoft may eventually pivot away from first-party hardware.