Hardware Xbox Would Be Dead, Says Former Microsoft Executive

The former general manager of publishing at Xbox in Europe, Neil Thompson, declared that Xbox hardware is "dead", suggesting that Microsoft should focus its efforts on making Game Pass available on all platforms. Thompson's statement, made in a recent interview, reflects a critical perspective on Microsoft's console strategy and sparks significant debate about the future of Xbox in the gaming industry.

This view contrasts directly with Microsoft's maintenance of physical consoles, despite its initiatives to bring games and services to multiple platforms, including cloud gaming. The statement from a former executive with insider knowledge adds weight to the discussion of whether Microsoft should abandon hardware manufacturing and become a publisher of software and services.

Neil Thompson, who worked at Microsoft for over two decades, is an experienced figure in the gaming market. His analysis suggests that competition in the console hardware segment, dominated by Sony and Nintendo, is a financial and strategic obstacle for Xbox. He argues that the true value of Microsoft lies in its services ecosystem, such as Game Pass, and its vast game catalog.

Thompson's vision is that Microsoft should focus on bringing Game Pass to where the players are, regardless of the platform. This would mean a hardware-agnostic approach, with the service available on PlayStation consoles, Nintendo Switch, PCs, and mobile devices. According to him, this strategy would allow Microsoft to maximize its subscriber base and revenue from software and services, without the costs and risks associated with console production and distribution.

Microsoft has indeed expanded the availability of its games on other platforms. Titles like Sea of Thieves, Hi-Fi Rush, Grounded, and Pentiment were released on PlayStation and Nintendo Switch in 2024, aiming to reach new audiences and generate additional revenue outside the Xbox ecosystem. This flexibility indicates that Microsoft is, to some extent, exploring the path that Thompson suggests.

The claim that Xbox hardware is "dead" is strong and provocative. Although sales of Xbox Series X/S consoles are consistently overshadowed by PlayStation 5 and Nintendo Switch, especially in markets like Japan (where Switch 2 sold almost twice as many consoles as Xbox Series), Microsoft continues to invest in new generations of hardware. Rumors about a new Xbox console are always present, and the company has introduced innovative designs for its controllers and accessories.

Microsoft faces the challenge of balancing loyalty to its console user base with the opportunity to expand Game Pass to billions of devices. The decision to end hardware production would be a radical move, with significant implications for the Xbox brand and its identity in the market. However, Neil Thompson's perspective serves as a reminder of the complexities and high stakes involved in the strategy of one of the world's largest technology companies in the gaming industry.