Xbox chief executive Asha Sharma says the company is prioritizing affordability for its next-generation console while introducing a new digital entitlement program for physical game owners.

Xbox chief executive Asha Sharma stated that the company must prioritize affordability and efficiency for its next-generation console, currently codenamed Project Helix. Speaking to the BBC, Sharma highlighted the impact of rising hardware component costs, which she described as a crisis for the gaming industry. She also announced a new initiative allowing owners of physical game discs to access digital versions of their titles.

Addressing Hardware Costs and AI Impact

Sharma attributed rising hardware prices to a surge in component costs, specifically noting that high demand for RAM from AI companies has created a situation she termed 'Rampocalypse.' As Microsoft is among the companies investing heavily in AI infrastructure, Sharma acknowledged the industry-wide challenge of managing hardware prices. She emphasized that for the next generation of consoles, Xbox is focusing on hardware efficiency, memory usage, and the cost per unit to maintain player access.

Digital Entitlement for Physical Media

To address the tension between digital and physical media, Xbox is introducing a feature that grants digital entitlements to owners of physical discs. Players will be able to insert supported discs into their consoles to gain access to the digital version of the game. Sharma noted that this system will cover 1,000 titles and allow for the transfer of digital rights if a physical disc is sold second-hand. While this move provides a digital alternative, Sharma did not confirm whether the next-generation console will include a physical disc drive.