Xbox is placing a strong emphasis on delivering a next‑generation console that balances efficiency, affordability, and raw performance, a strategy shaped 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 rethink how consoles are built, stating, "All of the industry needs to start to innovate on affordability and efficiency. That is something we have not had to do previously." Sharma explained that the current supply‑chain crunch and soaring component costs have forced manufacturers to reconsider the traditional pricing model. "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, giving people more choice in how they play their console and how they purchase it," she said.
This shift, she believes, will result in consoles that are not only powerful but also more accessible to a broader audience. While Sharma declined to confirm whether the upcoming Xbox, internally known as Project Helix, 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. "I know players love physical media, and I know there are many benefits to digital media, and I want to make sure people have a choice," Sharma remarked.
She added that Xbox’s long‑standing commitment to backward compatibility will continue to be a cornerstone of the platform across future generations. The conversation then turned to artificial intelligence, a technology Sharma described as "fundamentally changing a lot of things." Drawing on her experience as former president of CoreAI at Microsoft, she explained that AI will be used thoughtfully to enhance the gaming 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 said. For Project Helix, this means focusing on "hardware efficiency in terms of how you use storage and memory, the kind of price per unit, the components, things like that." Sharma has repeatedly warned against the misuse of AI, emphasizing that Xbox has "no tolerance for bad AI" and will not pursue short‑term gains by flooding the ecosystem with low‑quality, automated 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 clarified that the company 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 explained. "At the end of the day, as Asha said, we’re committed to art made by people.
Technology is only in support of that." In addition to product strategy, Sharma touched on recent organizational changes within Xbox. The division has undergone a significant restructuring, which included laying off 3,200 employees—about 20% of the Xbox workforce—and divesting five internal studios.
Sharma framed these moves as necessary steps to secure the company’s long‑term viability. "The restructuring was implemented to ensure we are here for the next 25 years and we’re continuing to serve our purpose," she said. She added that the gaming landscape is evolving, with players seeking new ways to engage and new technologies to explore.
"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 price points realistic, integrating AI in a way that enhances rather than replaces human creativity, and restructuring the business to stay resilient in a volatile market.
By prioritising efficiency, offering flexible media options, and maintaining a clear stance on the role of AI, Xbox aims to set a new standard for next‑generation consoles that serves both gamers and the broader industry for years to come.