Xbox leadership is focusing on making next-generation consoles more affordable as the gaming industry faces significant cost pressures. CEO Asha Sharma told the BBC that hardware expenses have surged due to increased demand for computing components by artificial intelligence companies, creating what she described as a “crisis” in component pricing. She indicated that Xbox must balance performance considerations with efficiency and cost-effectiveness in developing future hardware.
The company is introducing a feature allowing players to obtain digital versions of approximately 1,000 existing physical games, potentially enabling those titles to function on future Xbox consoles without requiring disc drives. The digital rights associated with physical game copies would transfer to new owners if the discs are sold second-hand. Sharma emphasized the importance of giving consumers choice regarding how they purchase and play games, noting the widespread appeal of physical media among gamers.
This initiative reflects broader industry shifts in game distribution. Competitor Sony recently announced that new PlayStation titles will cease physical disc releases beginning in 2028, while the highly anticipated Grand Theft Auto VI will launch exclusively in digital format. Sharma noted that many households possess collections of physical games and that Xbox aims to preserve backward compatibility across console generations.
Sharm, who assumed the Xbox leadership role six months ago after working in Microsoft’s artificial intelligence division, has previously outlined the need for substantial organizational restructuring following years of declining performance. She described the upcoming period as challenging but emphasized a long-term strategic perspective. The executive acknowledged that restructuring efforts, which involved workforce reductions, have created difficulties but are intended to position Xbox for sustained operations over the next 25 years as the gaming industry continues to evolve.
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