“Microsoft is at a crossroads,” says former PlayStation executive Shawn Layden, adding that Xbox consoles simply aren’t appealing enough to catch up—echoing the same crisis Sega faced before leaving the hardware market.

Shawn Layden has drawn parallels between Microsoft’s current trajectory and that of Sega’s final days in the console market after the Dreamcast. Speaking to GamesIndustry.biz, Layden says Xbox hardware is not strong enough to regain lost ground and suggests that Microsoft might do better as a third-party game publisher.

Microsoft’s shift toward cross-platform publishing has been a financial success. By releasing first-party titles on competing consoles, the company gains access to new audiences, prolongs the life of its games, and boosts revenues. Still, many fans see this strategy as diluting Xbox’s traditional identity, which was built on exclusives and a tightly controlled ecosystem.

Could Xbox Leave the Console Market?

Layden points out that while more console generations are inevitable, he’s not convinced Xbox will be around for all of them. “Looking at what Xbox has been doing lately, memories of the Dreamcast come to mind,” he says. “I think Sega realized they were better off as a software company. I think Microsoft is at a similar crossroads.”

“And I don’t think their hardware offering is compelling enough to make up for lost ground,” Layden adds. He proposes a future where consoles are standardized, and competition happens purely through content. This line of thinking aligns with Microsoft’s current reality, where Sony—once seen solely as a rival—is now helping drive record-breaking revenue for Xbox through multi-platform releases.

Despite Layden’s skepticism, there’s no indication that Microsoft is exiting the console space. On the contrary, they’ve signed a deal with AMD to supply chips for the next generation of Xbox hardware. While some see the company drifting from its roots, Microsoft appears committed to the hardware—at least for now.

In Layden’s view, Xbox must choose: evolve into a pure software publisher or keep investing in hardware with no guarantee of success. Microsoft seems to have made its choice—but history has a way of repeating itself.

Source: 3djuegos