Xbox CEO Asha Sharma has declined to confirm whether Microsoft's upcoming console, codenamed Project Helix, will feature a disc drive. When pressed by the BBC, Sharma stated that "efficiency and affordability alongside performance" are key considerations for the next generation of Xbox hardware.
Sharma explained that Xbox's focus is to "take into consideration what’s happening in the world and build the best experience for our players." This stance comes as Sony has announced that new game discs will not be part of the PlayStation 6 console generation. While this move has drawn criticism from some players, it potentially creates an opening for Xbox to differentiate its offering.
Evidence suggests Microsoft may indeed be moving away from physical media. The current Xbox Series S console notably lacks a disc drive, and data from market research firm Circana indicates that Xbox games accounted for only 4 percent of new physical game sales revenue in the U.S. during early 2026. The Xbox Series X, however, does include a disc drive.
Despite the potential shift, Xbox has introduced a new program designed to convert physical games into digital licenses. During a Gamescom livestream, Jason Ronald, Xbox's head of next-gen, highlighted the importance of continued access to a player's library, stating, "Even as technology changes and formats change, your library shouldn’t." This initiative appears to address player concerns about game ownership and rights, particularly in light of Sony's decisions.
Sharma acknowledged the player attachment to physical media while also recognizing the benefits of digital formats, assuring that "players have a choice." She also reiterated Xbox's commitment to backward compatibility across generations. This strategy could offer a compromise for players who value physical media while allowing Microsoft to potentially reduce hardware costs. Both Xbox and PlayStation are reportedly aiming to avoid console prices exceeding $1,000, a challenge exacerbated by rising memory and storage costs, partly driven by the increasing demand for AI infrastructure.