Xbox targets affordable next-generation console amid soaring component costs
Developed over time first seen 1 day ago
Xbox says its next-generation console must prioritise affordability as surging component prices, partly linked to AI data-centre demand, put pressure on the industry. It has also announced a scheme allowing owners of 1,000 supported physical games to receive digital entitlements, potentially preserving access to older titles on future Xbox hardware.
Chief executive Asha Sharma said the digital rights would transfer if a disc were sold second-hand, but did not confirm whether the console, codenamed Project Helix, will include a disc drive. She described rising memory and storage costs as a crisis requiring greater hardware efficiency, while acknowledging Microsoft’s major investment in AI infrastructure; Sharma also said Xbox’s wider restructuring, which cut thousands of jobs, was intended to secure its long-term future.
- Xbox aims for a more affordable next-generation console.
- 1,000 disc games will gain digital ownership rights.
- Rising AI-driven component costs are pressuring console makers.
New here? Start with this
Video game consoles are machines made for playing games at home, with new generations usually arriving every several years. Xbox is Microsoft’s gaming brand and competes mainly with Sony’s PlayStation and Nintendo’s Switch.
The cost of making a console depends on parts such as memory chips, processors and storage. Demand from companies building large artificial-intelligence data centres can make some of these components scarcer and more expensive, putting pressure on the price paid by customers.
Games sold on discs have traditionally needed the disc to be inserted to play, while digital games are linked to an online account. Allowing disc owners to claim a digital version could help preserve access to older games if future hardware has no disc drive, but it also raises questions about how ownership would work when discs are resold.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Prioritising affordability and efficiency is a responsible response to sharply rising component costs, particularly if AI-driven demand makes high-end hardware substantially more expensive. Granting digital entitlements for disc owners could preserve access to older games on a future disc-free console while reducing manufacturing costs and helping Xbox offer a lower-priced entry point. Supporters see this as adapting pragmatically to market conditions without abandoning existing customers.
The case against
Critics argue that moving from discs to digital entitlements risks weakening genuine ownership, resale rights and long-term game preservation, especially if licences cannot transfer with second-hand copies or are later withdrawn. A disc drive gives players choice, supports retailers and collectors, and provides a fallback when online services or accounts are unavailable. They contend that affordability should not become a reason to make customers more dependent on a closed digital ecosystem.
More coverage
Business Companies Entertainment Gaming Technology
Read the full article at the source →
Originally published by BBC Technology as “Xbox boss ‘thinking about affordability’ of next-gen console”.