Xbox CEO Asha Sharma teases “radically different business models”, hints at potentially cheaper console to arrive this year

Xbox CEO Asha Sharma has announced that the company is exploring “radically different business models” for its console business in response to a hardware affordability crisis. Rising costs of RAM and storage components, driven by demand for AI datacenters, have forced console manufacturers including Microsoft, Sony, and Nintendo to repeatedly raise prices, making current-generation hardware unaffordable for mass audiences.

Sharma acknowledged that the industry has “reached a point where it will be hard to imagine” consumers spending thousands of dollars on next-generation consoles. Rather than focusing solely on premium, high-performance hardware, Xbox is now prioritizing cost-efficiency and exploring new ways to structure console offerings, including flexible pricing plans and strategic partnerships.

Project Helix, Xbox’s next-generation console designed as a high-end PC hybrid, is being reevaluated to improve affordability, though Microsoft has not disclosed specific pricing or timelines. Sharma indicated that these “radically different business models” could begin rolling out later in 2026. The company remains committed to maintaining Project Helix’s core features, including PC game support and backward compatibility.

Additionally, Xbox is addressing subscriber decline in Game Pass—which saw users drop following a 50% price increase—by introducing more flexible subscription tiers and pricing options coming this summer.

Sharma acknowledged Xbox’s current business is “not particularly healthy,” which has prompted the company to return to console exclusives, starting with Gears of War: E-Day and Clockwork Revolution. The executive stated Xbox would pursue additional exclusives as the division’s financial health improves.

Xbox CEO Asha Sharma teases “radically different business models”, hints at potentially cheaper console to arrive this year

Sources