Former Microsoft executive criticizes confusing Xbox branding and suggests abandoning console development

Facing rumored layoffs and a shift toward multi-platform publishing, the Xbox Gaming division is in a state of transition. With less focus on existing Xbox consoles, there is confusion about what the brand stands for. Mike Ybarra held several executive positions at Microsoft over the course of 20 years before leaving the company in 2019. In a new social media post, he argues that Xbox needs to define its strategy more clearly.

Readers asked Ybarra how Microsoft should handle its gaming interests going forward. He responded by suggesting that Xbox should prioritize becoming the "world's largest publisher of entertainment content." That reply prompted angst from owners of Xbox consoles, who think the manufacturer is neglecting the hardware. Microsoft already releases former first-party exclusives on other consoles. As a result, there are fewer advantages to owning a Series X or Series S system.

Another concern is related to the reception of Microsoft's marketing. With the "This is an Xbox" campaign, the company aims to integrate its games and subscription services into a range of devices. However, TVs and VR headsets are not what many gamers associate with the Xbox moniker. 

Despite its multi-device approach, Microsoft may still have an interest in hardware development. It recently announced a partnership with AMD, which could involve a new Xbox console. Yet, with some analysts expecting a Series X successor, it's unclear what purpose the system would serve. Without exclusive Xbox games and many other ways to access Game Pass, buyers would need a compelling reason to upgrade.

The upcoming Asus ROG Xbox Ally will showcase a familiar UI and control scheme. Still, many critics classify it as a modified Windows handheld rather than an Xbox console.

Backward compatibility with older titles could be a reason to invest in future Xbox gaming systems. That said, Microsoft also seems intent on making its classics available on other platforms. Cloud streaming or emulation are two ways to ensure older Xbox games remain playable.

Ybarra recommends that Xbox gaming concentrate on software and services. However, for better or worse, Microsoft hasn't completely abandoned its hardware intentions.