Xbox’s Next Era May Start with a Painful Question About Console Prices
Asha Sharma said shortages and rising prices could push consoles toward new pricing plans and partnerships as hardware costs climb 2.75 times.
- Xbox CEO Asha Sharma warned that memory shortages, dubbed the 'RAM crisis,' will force 'radically different business models' for game consoles later this year as costs surge exponentially.
- Microsoft is 'having a hard time' meeting demand for Xbox Series consoles, with memory and storage costs rising 2.75x this generation and predicted to climb 7.5x higher, straining the company's ability to manufacture and sell hardware.
- Sharma noted that mass audiences cannot afford 'thousands of dollars' for new hardware, requiring the company to explore new partnerships and flexible pricing plans to keep consoles accessible to broader markets.
- Reflecting industry-wide pressure, Sony CEO Hiroki Totoki is considering changing PlayStation business models, while Valve recently increased the price of Steam Deck by $300, illustrating broader component cost pressures across gaming.
- Despite these challenges, Microsoft remains committed to Project Helix, with Sharma stating technologists must 'apply new techniques' to compress storage and empower new game types to fit on devices, requiring years of innovation.
19 Articles
19 Articles
Xbox’s next era may start with a painful question about console prices
Xbox is putting unusual pressure on its own console business, and a new Xbox Wire post gives players a clear reason to watch for an Xbox price hike. Microsoft says storage and memory prices are climbing fast, while Xbox can’t currently make as many consoles as players want to buy. It also says the business […]
Xbox Warns About Next-Gen Console Prices as They Explore "Radically Different Business Models"
By now, you must have heard about Asha Sharma, Xbox’s new CEO, who has made amazing changes to the brand. And the most recent change is an interesting one. While we didn’t see much Project Helix during Xbox’s summer showcase, we did see Xbox warn about next-gen console prices, with Sharma hinting that the company will need to be creative to help fans afford consoles. The cost of consoles has only risen lately, thanks to the rising costs of compo…
Xbox says millions of gamers won't be able to afford new consoles without 'radical' change
Sharma told Fortune that Microsoft "must think about other options" about how to market game consoles, from pricing plans to partnerships, in the face of hardware that will be too expensive for a mass audience. And, while she reiterated plans for Project Helix — the next-gen Xbox, a high-end, PC-compatible console — Sharma suggested that the console market would have to reconsider its exclusive focus on "premium, high-performance" hardware and c…
Xbox Series X25 Limited Edition price could be higher than expected, according to new Microsoft memo
(Credit: Microsoft/The Shortcut)💰 The price of the new Xbox Series X25 Limited Edition console could be higher than first thought📈 New Xbox CEO Asha Sharma has been candid about how high component and memory prices have risen in very recent times😬 It’s feared this could push the X25 Limited Edition ahead of the $749 price we’d predicted🤔 We already know Xbox is likely to undertake some radical business decisions to try and navigate this diff…
According to the new president, Xbox is no longer able to produce consoles on a large scale due to the rising costs of RAM and SSDs. Therefore, she is calling for a new business model and new partnerships.
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