Former Microsoft Exec and Blizzard President Slams Xbox’s Current Hardware Strategy, Says “Only a Moron” Would Keep Making Consoles When Its Games Are Going Third-Party

Former Microsoft executive and ex-Blizzard president Mike Ybarra strongly criticizes Xbox’s hardware strategy, arguing consoles are a losing game if the games themselves go third-party.

The new Xbox-branded ROG Ally handhelds launched globally last week, and for many fans, it looked like a big step in Xbox’s long-running shift toward a Windows-first approach. Microsoft has been clear that it’s not ditching hardware entirely, even going so far as to confirm it’s already deep into development on its next-generation Xbox hardware and that it is “100% looking at making things in the future.”

But while Microsoft is still talking about the future of Xbox hardware, former Xbox corporate VP and Blizzard president Mike Ybarra isn’t convinced the current strategy makes much sense. Earlier today, he shared his take on X (Twitter), voicing his frustrations with where the Xbox brand is heading.

“Only a moron” would keep making consoles when games go third-party, says Mike Ybarra

Ybarra’s comments came in response to a post from longtime Xbox fan Timdog, who was venting about Microsoft’s decision to ship the new ROG Ally handhelds with Windows instead of a lightweight, console-style Xbox OS. Ybarra replied with a long, brutal post that questioned Microsoft’s lack of direction.

In his words, Xbox is already out of the dedicated hardware and exclusive games business, and if it’s going to focus on being a publisher instead, one that releases games across PlayStation, Nintendo, and PC, it should lean all the way into that and stop pretending to be a console platform.

“It makes sense to me since they are out of HW and exclusive games,” Ybarra said. “That includes the dedicated OS, which is essential for any console device (ease of use, security, etc). They are a publisher who will embrace Windows.

“Most will just pirate all the games to the devices unless they use Steam. Why does Steam help piracy? Because it’s a flawless experience with a great return policy. Windows is far from a flawless experience and will never be one. From a business standpoint, it’s a fine strategy – if they can make good games and embrace Steam (will sell on PS, Nintendo, and PC). Big if given track record of games for the last 15 years.

“Only a moron would continue to make console HW when the games all go (or will go) 3rd party. To shift, they’d have to go back to exclusive, make great HW at a loss, and strive to win the living room. That’s not their strategy (which is fine), but for some reason, they just keep riding the middle, not being clear, doing more harm for no reason. As I said a thousand times, get a clear strategy, and rip the band-aid off, and focus on execution. Otherwise, death by a thousand needles.”

This isn’t the first time Ybarra has been outspoken about Xbox’s direction. Just last month, he reacted to a post celebrating Sony’s claim that the PlayStation 5 is its “most successful” console generation by saying, “But hey, the console market isn’t a successful business. It is if you do it right.”

When someone replied by calling him a “bitter ex,” Ybarra fired back with a now-viral response: “Your console is dead.” — a comment many took as a jab at Xbox’s current hardware strategy.

Still, it’s worth pointing out that Microsoft doesn’t seem ready to give up on hardware just yet. The company has publicly confirmed that it’s working on brand-new Xbox hardware.

What do you think? Is Ybarra right that the console strategy is doomed unless Xbox doubles down on exclusives and hardware? Let us know your thoughts in the comments below!