Xbox is dead and Microsoft is messing up, says Mike Ybarra, former executive of the company

Mike Ybarra, former president of Blizzard Entertainment and former corporate vice president of Xbox at Microsoft, has sparked heated discussions by openly criticizing the console market and, more directly, Microsoft's strategy with Xbox. His statements suggest that the company's current approach is failing in a competitive landscape.

In a series of posts on the X platform (formerly Twitter), Ybarra questioned the viability of the console market, stating that it is only "a successful business if you do it right." This observation came in response to an IGN report on the success of the PlayStation 5, which has already accumulated over $136 billion in sales, making it the most successful generation in PlayStation history.

Ybarra's criticism intensified when, after being called a "bitter ex-employee" by a user, he responded categorically: "Your console is dead," referring to the Xbox Series X|S. In another interaction, when commenting on the idea that "everything can be a console if you're brave enough," Ybarra retorted: "You mean confused enough," an apparent jab at Microsoft's strategy of expanding horizons to all sorts of equipment (like cell phones).

This isn't the first time that Ybarra, who left Microsoft in 2019 after nearly two decades, has commented on the Xbox. On previous occasions, he had already expressed frustration with the lack of Xbox exclusives and advised Microsoft to "choose its path and stick to it," indicating that the company seemed "confused about who it is and what it should be."

Some agree with Ybarra, pointing to the perception that Xbox has been losing ground to the competition and that the strategy of focusing on services like Game Pass, to the detriment of hardware and exclusives, may be a mistake. Others, however, see Ybarra's statements as the opinion of a former employee who may have resentments or a limited view of Microsoft's current strategy, which seeks to expand the Xbox ecosystem beyond traditional consoles.

Xbox Series is abandoned by one of the world's largest retail chains!

 

Costco, one of the largest retail chains in the world, has confirmed that it will no longer sell the Xbox Series X and Series S consoles in its stores in the United States and the United Kingdom. This decision, described by the company as purely commercial, marks a significant moment in the distribution of Microsoft's consoles, which are already facing challenges in their global sales.

  

The absence of Xbox consoles was initially noticed by consumers, and after investigations by outlets such as GamesIndustry and independent journalist Destin Legarie (formerly of IGN), it was confirmed that, as of August 6, 2025, the consoles are no longer available on the retailer's website. Upon contacting Costco, Legarie received the following statement:

“We have no plans to market an Xbox console going forward.

 

It is important to note that, while the Xbox Series X|S consoles are being removed from shelves, Costco continues to offer promotions for the Nintendo Switch and PlayStation, indicating that the decision specifically affects Xbox products. The situation extends to Canada, where the Xbox Series X|S consoles are also absent from Costco's website, although local customer service claims that they still sell them, but are temporarily out of stock.

This move by Costco occurs in a context where Microsoft recently announced a price increase for the Xbox Series X|S consoles in the United States, this being the second adjustment of the year. The combination of sales below expectations, the price increase, and the loss of such a relevant distribution channel raises questions about Microsoft's strategy for its hardware in the market.

Former Blizzard president slams Microsoft after Xbox price increase

 

Após o segundo reajuste no preço do Xbox em apenas cinco meses, gerando fortes críticas de figuras proeminentes da indústria, como Mike Ybarra, ex-presidente da Blizzard.

 

Ybarra expressed his dissatisfaction on his X account (formerly Twitter), stating that "Aumentos de preço de consoles não são questões de tarifas, são questões de lucro". Ele argumenta que a justificativa da Microsoft para o primeiro aumento, atribuído a tarifas sobre produtos importados, não se aplica ao segundo reajuste. Segundo Ybarra, "Usar isso como desculpa para continuar elevando os preços, sem novos aumentos nas tarifas, é simplesmente um problema diferente, e eles estão fazendo os consumidores continuarem pagando por esses problemas".

Este aumento ocorre em um período desafiador para a divisão Xbox da Microsoft, que passou por quatro rodadas de demissões desde o início de 2024. Além disso, projetos importantes como o remake de Perfect Dark e o jogo Everwild da Rare foram cancelados. A situação levanta questões sobre a saúde financeira da divisão e a estratégia da empresa no mercado de jogos. 

Microsoft culpa ambiente macroeconômico por aumento do preço do Xbox

 

A Microsoft decidiu fazer um novo reajuste nos preços dos consoles Xbox Series nos Estados Unidos, marcando o segundo aumento em apenas quatro meses. A medida, que entra em vigor a partir de 3 de outubro de 2025, eleva o custo de todas as versões dos consoles, gerando discussões sobre a acessibilidade e o futuro do mercado de hardware de jogos.

Os novos preços nos EUA são:

Xbox Series S 512GB: de $379,99 para $399,99 (+$20)

Xbox Series S 1TB: de $429,99 para $449,99 (+$20)

Xbox Series X Digital: de $549,99 para $599,99 (+$50)

Xbox Series X: de $599,99 para $649,99 (+$50)

Xbox Series X 2TB Galaxy Black Special Edition: de $729,99 para $799,99 (+$70)

A Microsoft justificou o aumento citando “mudanças no ambiente macroeconômico” e as recentes tarifas impostas pelos EUA, que impactam diretamente os custos de fabricação dos consoles em países como China e Vietnã. A empresa garantiu que os preços dos acessórios, como controles e headsets, permanecerão inalterados.

Esse cenário chama atenção porque, tradicionalmente, os preços dos consoles tendem a cair à medida que a geração avança. A tendência de aumento gera preocupações sobre acessibilidade e pode afetar a base de consumidores. Alguns analistas veem a decisão como uma resposta inevitável às pressões econômicas globais e às políticas comerciais, enquanto outros acreditam que isso pode afastar potenciais compradores e reduzir a competitividade do Xbox no mercado. No Brasil os preços ainda continuam os mesmos.