Former Blizzard President Mike Ybarra has expressed concern about Xbox, as it currently seems like the company doesn’t know what it should be. Ybarra, who also served as corporate Vice President at Microsoft, has been vocal about his opinions on the gaming industry since stepping out of it. As Xbox reveals more about its upcoming hardware and software plans, the exec has started expressing worry over the company’s future direction.
Microsoft’s gaming segment has seen its fair share of ups and downs in recent years. In the first quarter of fiscal year 2025, Xbox hardware sales dropped by 29% despite a 43% increase in overall revenue. Before then, its hardware showed a 42% year-over-year sales decline between 2023 and 2024, while software and services continued to thrive. This discrepancy has caught the attention of fans and businesspeople alike, including Ybarra.
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Ybarra voiced his opinion of the company on Twitter, telling Xbox to “pick your lane and stick to it.” While he reaffirmed that he’s still a big Xbox fan and said “some great people” still work there, he also expressed that the gaming giant was confused about its identity. Ybarra also said change needs to come quickly, and considering how Microsoft has cut nearly 3,000 Xbox jobs since 2022, it’s easy to see where the sense of urgency may come from.
Former Blizzard and Microsoft Exec Mike Ybarra Says Xbox Needs to Pick Its Lane
The former Blizzard President went on to clarify that he thinks Xbox should focus more on the publishing side of its business than hardware production. While its console segment has struggled lately, Microsoft was the world’s largest games publisher in December 2024, with its titles generating a staggering $465 million that month. It’s kept that hot streak going into 2025 with Microsoft-owned games like Forza and Indiana Jones and the Great Circle seeing impressive success on PlayStation. Bringing once-exclusives to competitors’ platforms has paid off for Xbox, and Ybarra seems to think that identity as a publisher is what the company should embrace instead of trying to also be a leading hardware manufacturer.
Despite its software and services far outperforming its hardware, Microsoft still has not given up on the console side of things. It recently unveiled the Asus-manufactured ROG Xbox Ally to break into the handheld market. It has also teased that the next Xbox console will be the “largest technical leap” gamers have ever seen between generations. How the company will execute those goals is still uncertain, but Ybarra seems to think it’s better off with a narrower focus.
- Brand
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Microsoft
- Original Release Date
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November 10, 2020
- Original MSRP (USD)
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$499
- Operating System
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Proprietary (Windows-based)
- Processor
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Custom AMD 8-core Zen 2 3.8 GHz
- Resolution
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720p – 4K UHD