Xbox is placing a strong emphasis on delivering a next‑generation console that balances efficiency, affordability, and raw performance, a strategic shift prompted by escalating hardware expenses and rapid progress in artificial intelligence. In a recent interview with the BBC, Xbox executive Asha Sharma highlighted the industry‑wide need to innovate around cost 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," she said, underscoring that the current supply‑chain crunch and component shortages demand fresh thinking. Sharma explained that the hardware crisis—characterized by soaring prices for chips, memory modules, and storage solutions—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. This perspective suggests that future Xbox models will likely offer a range of configurations, allowing consumers to select a version that fits their budget while still delivering a high‑quality gaming experience. When pressed about the rumored next‑gen Xbox, internally referred to as Project Helix, Sharma declined to confirm whether a physical disc drive would remain part of the design. However, she did discuss a new "disc‑to‑digital" feature that will enable owners of physical game discs to unlock corresponding digital copies.
"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. She emphasized that Xbox has a long history of supporting backward compatibility, and that commitment will continue as the platform evolves through successive generations.
The conversation then turned to artificial intelligence, a technology Sharma described as "fundamentally changing a lot of things." Drawing on her background as former president of CoreAI at Microsoft, she explained that AI will be leveraged to enhance the overall player experience without compromising artistic integrity. "The platform will take into consideration what's happening in the world and build the best experience for our players," she noted, adding that for Project Helix this means careful attention to hardware efficiency—optimising storage utilisation, memory bandwidth, and component costs.
Sharma has previously warned that Xbox will tolerate "no bad AI" and will not chase short‑term efficiency gains at the expense of quality. "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 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 also touched on Xbox's recent organisational restructuring. The company has laid off roughly 3,200 employees—about 20 % of its workforce—and divested five internal studios. She framed these moves as necessary steps to ensure the division's longevity and relevance for the next quarter‑century.
"We are here for the next 25 years and we're continuing to serve our purpose," Sharma explained. She added that the gaming landscape is shifting, with players seeking new ways to engage and emerging 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," she admitted, signalling a willingness to adapt and reinvent.
In summary, Xbox's roadmap for its upcoming console reflects a multifaceted approach: delivering cost‑effective hardware without sacrificing performance, offering flexible media options, integrating AI responsibly, and restructuring the business to stay agile. By prioritising efficiency and affordability alongside cutting‑edge performance, the company aims to meet the demands of a market strained by component shortages while preserving the creative spirit that defines modern gaming. This balanced strategy could set a new benchmark for the industry, encouraging other manufacturers to follow suit and fostering a more sustainable, player‑centric future for console gaming.