Xbox boss 'thinking about affordability' of next-gen console

Microsoft's Xbox chief executive Asha Sharma revealed that the company is actively focusing on affordability and hardware efficiency for its next-generation console, codenamed Project Helix, amid escalating component and RAM costs driven by massive artificial intelligence infrastructure spending. Unlike previous console generations where hardware prices consistently decreased over time, current-generation consoles have experienced unprecedented post-launch price increases, with Xbox Series S and Series X models seeing sharp price hikes due to memory supply shortages. Sharma described the industry as navigating a severe hardware cost crisis alongside significant restructuring across the Xbox gaming division. To ease player transitions and maintain backwards compatibility, Xbox announced a new initiative granting digital entitlements for over 1,000 physical disc titles, allowing gamers to access digital versions of their disc-based libraries. While Sharma did not confirm whether Project Helix will feature a physical disc drive, the strategic pivot highlights Microsoft's broader effort to innovate around storage, memory efficiency, and digital distribution as gaming hardware economics face ongoing pressure from AI demand.