Xbox CEO Asha Sharma has acknowledged the irony of current console price hikes, admitting that Microsoft's significant investment in artificial intelligence has played a part in the rising cost of Xbox hardware. Speaking in an interview, Sharma expressed optimism about the broader applications of GPU technology beyond gaming, even as it impacts console affordability.
"Gaming has always been a proving ground for the GPU. I think it is wonderful that there are more uses for this technology around the world," Sharma told the BBC. "AI is fundamentally changing a lot of things. So our job as Xbox, as we continue on our next generation, is to take into consideration what's happening in the world and build the best experience for our players."
Following multiple price adjustments, the Xbox Series S now retails for $500, a $200 increase from its 2020 launch price. Sharma indicated that for future console generations, including Microsoft's planned "Helix" platform, the company will focus on "efficiency and affordability, alongside performance." The Helix platform may also evolve beyond a single device into a family of systems.
"We've been hard at work on a great next generation, a great family of devices for Helix, and we'll share more soon," Sharma stated. "We will of course continue to push the boundaries of performance. We've talked about being able to not only play your console games but also play your PC games on your console. I think in addition, all of the industry needs to innovate on affordability and efficiency. That is something that we have not had to [before]."
Sharma highlighted that the current hardware component market challenges necessitate innovation to offer players greater choice in how they acquire and play on their consoles. To mitigate the impact of recent price increases, Microsoft has suggested consumers utilize Buy Now, Pay Later services or explore financing options with 0% APR introductory periods. Purchasing a certified refurbished console is also presented as a more affordable entry point.
Despite these market pressures, Xbox has seen some positive hardware trends, including a recent doubling of console sales in the US. The most expensive Xbox console ever, a 25th-anniversary translucent green edition, launched at $900 and sold out quickly. However, the broader trends in hardware spending have been negative across the industry. Sony has also implemented several PlayStation 5 price increases, and Nintendo is set to raise the price of the Switch 2 on September 1.