People at the Very Top of Microsoft Know How Bad Things Really Are

posted by Roy Schestowitz on Jul 01, 2025

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Related: Mass Layoffs at Microsoft Confirmed, "XBox Hardware Is Dead" | Microsoft XBox Layoffs: Almost 2,000 Layoffs Became "Over 2,000"? (Over 20% of the Staff)

A lot of sites currently mention the possibility that XBox "is dead" [1,2] because the person who said it is "former executive producer at Microsoft Games Studios and one of the founders of the original console team".

She should know. She's there at the top. She sees (or saw) memos that most employees do not see.

Speaking of people at the top, who know things people below them do not, Microsoft’s Sales Chief - whatever that means in practical terms - must know a "bloodbath" is coming and is leaving the company, at least until the "dust settles" (or blood settles) [3,4].

Microsoft is having financial problems. There's no "quick fix" for that. As Tom's Hardware put it this week, "Windows seemingly lost 400 million users in the past three years — official Microsoft statements show hints of a shrinking user base". The article says "Windows lost its crown to Android eight years ago, and it seems that it's still bleeding users."

We have been saying this for a long time. There's no product that can replace the former profitability of Windows licensing and stuff that went on top of Windows. █

Related/contextual items from the news:

1. Former exec says Xbox’s hardware ‘is dead’ and the brand has lost its soul

   Microsoft’s Xbox strategy has taken some unexpected turns lately. After years of focusing on exclusives and Xbox Game Pass, the company has started pushing games like Forza Horizon 5 to PlayStation.

   That’s not all; Microsoft recently launched Xbox-branded ROG Ally. It also announced a multi-year deal with AMD to develop the next generation of Xbox consoles. But while the future looks ambitious on paper, not everyone’s impressed.

2. “Xbox is dead,” says Xbox co-founder at Microsoft

   Xbox no longer has any ambitions to develop hardware. This is what Laura Fryer, former executive producer at Microsoft Games Studios and one of the founders of the original console team, says: “Personally, I think Xbox hardware is dead.”

   You may have followed the two big news in the Xbox world in recent weeks: the partnership with AMD to manufacture the chips for the next generation of consoles and, a little earlier, the launch of the ROG Xbox Ally and Ally X portables , in collaboration with Asus — both reported here on Tecnoblog .

3. Microsoft’s Sales Chief to Take Sabbatical With Layoffs Looming

   Microsoft Corp.’s top sales executive is planning to take a two-month sabbatical, a move that coincides with an expected wave of terminations targeting his organization.

4. Microsoft’s Sales Chief to Take Leave of Absence Ahead of Layoffs