Xbox is placing a strong emphasis on delivering a next‑generation console that balances efficiency, affordability, and raw performance, a strategy driven by the escalating costs of hardware components and rapid developments in artificial intelligence. In a recent interview with the BBC, Xbox executive Asha Sharma highlighted the industry‑wide need to innovate around price and power consumption, noting that this focus represents a shift from earlier generations where cost constraints were less pressing.
"All of the industry needs to start to innovate on affordability and efficiency," Sharma said. "That is something that we have not had to do [previously]." She explained that the current supply‑chain crisis—marked by shortages of semiconductors, memory chips, and other critical parts—forces console makers to rethink how they design and price their products. "With the crisis that's currently happening in hardware and components, it is absolutely something all of us need to be thinking about and innovating on and giving people more choice in terms of how they play their console and how they purchase their console," she added.
The upcoming Xbox, internally referred to as Project Helix, is expected to embody these principles. While Sharma declined to confirm whether the new hardware will retain a physical disc drive, she did discuss a new "disc‑to‑digital" feature that allows owners of physical games to unlock a digital copy of the same title. "I know players love physical media, and I know there's a lot of benefits in digital media, and I want to make sure people have a choice," she explained.
"We've long pioneered backwards compatibility, and so you'll continue to see that as we go forward in the generations." Sharma also addressed the growing conversation around AI, describing it as a technology that is "fundamentally changing a lot of things." Drawing on her previous role as president of CoreAI at Microsoft, she said the AI platform will be used to "take into consideration what's happening in the world and build the best experience for our players." For Project Helix, this translates into careful attention to hardware efficiency—optimising storage utilisation, memory bandwidth, and component selection—to keep the price per unit competitive while still delivering cutting‑edge performance. The Xbox leadership has been clear about their stance on artificial intelligence in gaming. Sharma has repeatedly stated that Xbox has "no tolerance for bad AI" and will not pursue short‑term gains that could flood the ecosystem with low‑quality, soulless AI content.
"Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us," she affirmed. This philosophy was echoed by Xbox chief content officer Matt Booty, who noted that the teams are under no pressure from Microsoft to adopt AI indiscriminately. "Our teams are free to use any technologies that might be beneficial, whether it's helping write code or check for bugs – things more in the production pipeline," Booty said.
"At the end of the day, as Asha said, we're committed to art made by people. Technology is only in support of that." Beyond product design, Sharma touched on the broader organisational changes occurring within Xbox. The division has undergone a significant restructuring that resulted in the layoff of roughly 3,200 employees—about 20% of the Xbox workforce—and the divestiture of five internal studios.
She framed these moves as necessary steps to ensure the long‑term health and relevance of the brand. "The restructuring was implemented to ensure we are here for the next 25 years and we're continuing to serve our purpose," Sharma explained.
"We're in the middle of a new generation that wants to play in a different way, and new technology as well. Within Xbox, we haven't been healthy." The focus on affordability does not mean compromising on the core gaming experience.
Sharma emphasized that the next‑gen console will still aim to provide the high‑fidelity graphics, low latency, and robust ecosystem that gamers expect from Xbox. However, by leveraging advances in AI for tasks such as automated testing, performance optimisation, and intelligent asset streaming, the development pipeline can become more efficient, potentially lowering production costs and, in turn, retail prices.
In summary, Xbox's roadmap for its forthcoming console is built around three pillars: cost‑effective hardware design, strategic use of AI to enhance—not replace—human creativity, and a commitment to offering players both physical and digital options. By confronting the current hardware supply challenges head‑on and refusing to sacrifice artistic integrity for fleeting AI hype, the company aims to deliver a console that feels both modern and accessible. The upcoming Project Helix, therefore, promises to be a platform where efficiency and affordability coexist with the performance and immersive experiences that have become synonymous with the Xbox brand.