The status quo was seperate software developers and software developers in test, and nearly equal numbers [1] (I haven't read this book, only the description, but seems authoritative).
The new normal changed around 2014, as described in this Ars Technica article [2]. In order to ship more stuff, more quickly, Microsoft eliminated the developer in test roles, removing the bottleneck of a specific role in charge of quality and hoping to diffuse the responsibility.
This addresses the 'fired all testers' part of your quote. I don't have references on the 'scrapped their testing hardware', but I imagine most testing hardware was maintained by developers in test, and when their positions were eliminated, they may not have had anyone to transfer the hardware to.
The new normal changed around 2014, as described in this Ars Technica article [2]. In order to ship more stuff, more quickly, Microsoft eliminated the developer in test roles, removing the bottleneck of a specific role in charge of quality and hoping to diffuse the responsibility.
This addresses the 'fired all testers' part of your quote. I don't have references on the 'scrapped their testing hardware', but I imagine most testing hardware was maintained by developers in test, and when their positions were eliminated, they may not have had anyone to transfer the hardware to.
[1] https://www.amazon.com/How-We-Test-Software-Microsoft/dp/073...
[2] https://www.amazon.com/How-We-Test-Software-Microsoft/dp/073...