Xbox is placing a strong emphasis on delivering a next‑generation console that balances efficiency, affordability, and raw performance, a strategic shift prompted 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 is a challenge the company has not faced to this extent before. "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 went on to explain that the current "crisis" in the supply chain for chips, memory, and other essential 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 codenamed Project Helix, is expected to embody these principles, though Sharma declined to confirm whether a physical disc drive will be retained. Instead, she turned the conversation toward Xbox’s new disc‑to‑digital feature, which 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," Sharma 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 experience as former 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 a focus on hardware efficiency—optimising how storage and memory are managed, keeping unit costs reasonable, and selecting components that deliver the best performance‑per‑dollar ratio. In previous statements, Sharma made it clear that Xbox has "no tolerance for bad AI" and will not pursue short‑term gains that could flood the ecosystem with low‑quality, "soulless" artificial‑intelligence content. "Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us," she asserted.
This philosophy was echoed by Xbox Chief Content Officer Matt Booty, who confirmed that the division faces "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 strategy, Sharma touched on the broader organisational changes taking place at Xbox. The company recently underwent 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. Sharma framed these moves as necessary steps to secure the long‑term health of the business.
"The restructuring was implemented to ensure we are here for the next 25 years and we're continuing to serve our purpose," she explained. She added that the gaming landscape is evolving, with players seeking new ways to engage and new technologies reshaping how games are built and delivered.
"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," she concluded.
The overarching message from Xbox leadership is clear: the next console will aim to be more than just a powerful machine. It will strive to be a cost‑effective, energy‑efficient platform that respects the preferences of both physical‑media enthusiasts and digital‑first gamers, while leveraging AI responsibly to enhance, not replace, the creative process. By rethinking component selection, pricing models, and the role of emerging technologies, Xbox hopes to set a new benchmark for the industry—one that balances cutting‑edge performance with accessibility and artistic integrity.
This approach reflects a broader industry trend toward sustainability, consumer choice, and the careful integration of AI as a tool rather than a crutch, ensuring that the art of game‑making remains firmly in human hands.