Xbox head Asha Sharma warns that the rising costs of hardware manufacturing, driven by AI demand and global logistics, make the traditional console model unsustainable for the mass market. She suggests that upcoming hardware generations will likely move away from a focus on purely premium, high-performance units.
Instead, Microsoft is looking toward new business models to maintain affordability, hinting at potential subscription-based hardware access or revised distribution partnerships to reach broader audiences for its next-generation platform, currently codenamed “Project Helix.”