Xbox chief executive Asha Sharma said the company must place “affordability” at the forefront of its next‑generation console strategy, a stance she articulated during a recent interview with the BBC. Sharma linked the need for cheaper hardware to a broader “crisis” in computing prices, noting that the surge in component costs – especially for RAM – is driven in part by artificial‑intelligence (AI) workloads that consume large quantities of silicon for data‑centre use.
Affordability and hardware efficiency
Sharma explained that the rising price of hardware components, such as memory, has forced the entire gaming industry to rethink cost structures that have traditionally been stable for years after a console’s launch. She said, “All of the industry needs to start to innovate on affordability and efficiency. That is something that we have not had to do previously,” adding that the current “crisis” in component pricing makes it essential for manufacturers to deliver more choice to consumers.
Microsoft, the parent of Xbox, is among the firms investing heavily in AI infrastructure, a factor Sharma said contributes directly to higher component prices. “AI is fundamentally changing a lot of things,” she remarked, emphasizing that Xbox’s next‑gen hardware must consider “hardware efficiency in terms of how you use storage and memory, the kind of price per unit, the components, things like that.”
While she did not disclose whether the upcoming console – currently codenamed Project Helix – will include a disc drive, Sharma stressed that the design will balance performance with cost. “This next generation, we have to be thinking about efficiency and affordability alongside performance,” she said, underscoring a shift from past generations where price pressure was less acute.
Digital entitlement for physical games
In addition to hardware concerns, Sharma announced a new digital entitlement system that would allow owners of certain physical discs to obtain a corresponding digital copy. She said Xbox will enable players to convert up to 1,000 titles that currently exist on disc into digital rights, giving users the flexibility to play without inserting a disc.
Under the proposed system, if a disc is sold second‑hand, the digital entitlement would transfer to the new owner, preserving the resale market that disc enthusiasts value. Players would activate the feature by inserting a supported game into their Xbox console, which would then grant a digital license for that title.
Sharma highlighted that the move aligns with Xbox’s longstanding commitment to backward compatibility. “We’ve long pioneered backwards compatibility and so you’ll continue to see that as we go forward in the generations,” she said, suggesting that the digital entitlement could allow older titles to run on future hardware without the need for a physical drive.
Industry context and future outlook
The announcement arrives amid broader industry shifts. Sony has declared that new PlayStation releases will cease to be issued on physical discs starting January 2028, and the highly anticipated Grand Theft Auto VI is set to launch without a disc format. Sharma acknowledged the growing stacks of games on consumers’ shelves and the desire to give players a choice between physical and digital media.
Sharma, who has led Xbox for six months after moving from Microsoft’s AI division, framed the current challenges as a “reset” aimed at securing the brand’s relevance for the next 25 years. She said the reset is intended to “help ensure we are here for the next 25 years and we’re continuing to serve our purpose,” noting that the gaming landscape is evolving toward new ways of playing and new technology.
She also warned that the coming years will be “challenging,” but expressed confidence that gaming is on the cusp of becoming “the most important form of entertainment for the next century.” Sharma’s comments reflect a strategic pivot that balances long‑term vision with immediate cost pressures, positioning Xbox to adapt to both AI‑driven supply constraints and shifting consumer preferences.
Additional reporting by Imran Rahman‑Jones.
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