Xbox is placing a strong emphasis on delivering a next‑generation console that balances efficiency, affordability, and high 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 previous console generations. "All of the industry needs to start to innovate on affordability and efficiency," Sharma asserted.
"That is something that we have not had to do [previously]." She explained that the current supply‑chain crisis, marked by shortages of semiconductors and other critical parts, forces manufacturers to rethink how they design and price their devices. "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 dubbed Project Helix, is expected to embody these principles, though Sharma declined to confirm whether it will retain a physical disc drive.
Instead, she turned the conversation toward Xbox’s newly announced disc‑to‑digital feature, which allows owners of physical game discs to unlock a corresponding digital copy. "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 said.
"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 influence of artificial intelligence on game development and console design. Drawing on her experience as former president of CoreAI at Microsoft, she described AI as a technology that is "fundamentally changing a lot of things." For Project Helix, this means evaluating hardware efficiency not only in terms of raw performance but also in how storage, memory, and component costs are managed.
"The platform will take into consideration what's happening in the world and build the best experience for our players," she explained, emphasizing that AI will be used judiciously rather than as a gimmick. In previous statements, Sharma warned that Xbox has "no tolerance for bad AI" and will not sacrifice artistic integrity for short‑term gains.
"Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us," she affirmed. This stance was echoed by Xbox chief content officer Matt Booty, who clarified that there is no corporate pressure from Microsoft to embed 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 Xbox’s broader organisational changes. The division recently underwent a restructuring that resulted in the layoff of approximately 3,200 employees—about 20% of the Xbox workforce—and the divestiture of five internal studios. While the cuts were painful, Sharma framed them as a necessary step to secure the long‑term health 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," she explained.
She added that the gaming landscape is evolving, with players seeking new ways to engage and new technologies reshaping expectations. "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," Sharma concluded.
Overall, Xbox’s roadmap for Project Helix reflects a balancing act: delivering cutting‑edge performance while keeping the console within reach of a broader audience, leveraging AI to enhance development pipelines without compromising creative vision, and streamlining the organization to stay agile in a fast‑changing market. As the industry watches, the success of this approach could set a new benchmark for how future consoles are conceived, priced, and brought to market.