Xbox Says Affordability Is a Priority for Its Next Console

Xbox is putting more focus on affordability and hardware efficiency for its next-generation console, codenamed Project Helix, as component costs rise and the company weighs how AI fits into its future hardware plans.

In a BBC interview, Xbox boss Asha Sharma said the industry needs to “innovate on affordability and efficiency” in ways it hasn’t had to before. She pointed to storage, memory, component pricing, and overall cost per unit as areas Xbox is considering for its next machine.

Sharma did not say whether the next Xbox will include a disc drive. She did, however, talk around the company’s upcoming disc-to-digital option, which will let some players unlock digital versions of physical games they already own. Sharma said Xbox wants players to keep having choice, while also continuing its work on backward compatibility.

AI also came up, though Sharma framed it more as a hardware and production consideration than a replacement for game creators. She said AI is “fundamentally changing a lot of things,” but also repeated Xbox’s stance that games should remain “crafted by humans.” Xbox chief content officer Matt Booty has similarly said teams can use tech that helps with coding or bug checking, but that it should support developers rather than replace creative work.

The comments come after a difficult stretch for Microsoft’s gaming division. Xbox recently went through a major restructuring that included 3,200 layoffs, about 20% of the organization, and the divestment of five internal studios. Sharma said the changes were meant to help Xbox stay around for the long term, adding that the division “hadn’t been healthy.”