Xbox leadership is prioritizing affordability and efficiency in designing the company’s upcoming next-generation console, according to a statement from chief executive Asha Sharma in an interview with the BBC. The executive attributed the need for cost-conscious design to what she described as a crisis in computing component pricing, with AI companies competing heavily for hardware resources and driving up prices for components like RAM.
Sharma also announced a new initiative that will allow players to obtain digital versions of physical games they already own. The program will support approximately 1,000 titles with physical discs, enabling digital entitlement transfers. If a physical disc is sold second-hand, the digital rights transfer to the new owner. Players will access the feature by inserting supported games into their Xbox console, with hints suggesting the digital entitlements will function across future hardware generations as part of Xbox’s backwards compatibility strategy.
The executive declined to specify whether the next-generation console, codenamed Project Helix, will include a disc drive. The physical-versus-digital debate has become increasingly contentious in the gaming industry, particularly following Sony’s announcement that PlayStation games will cease physical releases from January 2028, and Grand Theft Auto VI’s launch without a physical disc option.
Sharma, who assumed her position six months prior after transitioning from Microsoft’s AI division, emphasized that hardware innovation must balance performance with efficiency and cost. She characterized the current hardware market situation as a crisis requiring industry-wide innovation in affordability, noting this represents an unprecedented challenge for the console market. She also referenced Xbox’s recent significant restructuring, describing it as necessary to ensure the company’s viability over the next 25 years, though acknowledging the coming years would present challenges.
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