A founding member of the Xbox team says she believes Xbox hardware is "dead" and that Microsoft appears to be planning a "slow exit" from the gaming hardware business. Microsoft recently announced partnerships with external hardware companies including the ROG Xbox Ally, which runs Windows and functions as a portable PC that can run games from external stores like Steam.

Laura Fryer, one of Microsoft Game Studios' first employees who worked as a producer on the original Gears of War games and served as director of the Xbox Advanced Technology Group, called the partnerships evidence of Microsoft's inability to ship hardware. "Personally, I think Xbox hardware is dead. The plan appears to be to just drive everybody to Game Pass," Fryer said.

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