Xbox CEO hints at radically different business models

Xbox CEO Asha Sharma has suggested the company will introduce new approaches to console sales later this year amid rising hardware costs. In a Fortune interview, she pointed to challenges with RAM and storage prices that are now 2.75 times higher than at launch. Sharma said the firm is exploring options beyond price increases to keep consoles accessible.

Sharma described the current situation as a crisis for the entire industry. She noted that costs have risen sharply and that patience will be needed to see results from new strategies. The CEO mentioned efforts to optimize console construction costs and create different plans for broader participation. She also referenced flexible storage offerings and new techniques to compress memory requirements. On exclusives, Sharma said Xbox would start with one or two signature titles as the business works toward greater health. She added that the company is looking at partnerships for better distribution.

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Xbox CEO Asha Sharma at press conference outlining data-driven Game Pass and exclusivity plans.
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Xbox CEO Asha Sharma holds off on exclusivity decisions

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Xbox CEO Asha Sharma stated she has not yet decided on returning to console exclusives, opting for a data-driven approach. In an interview and open letter released on April 24, Sharma and content chief Matt Booty outlined plans to fortify Game Pass, invest in hardware affordability, and establish a predictable content cadence. The announcements coincide with a new Xbox logo and leaks of a Game Pass Starter Edition.

Xbox executive Asha Sharma has acknowledged that ongoing memory shortages will affect the pricing and availability of the next-generation Project Helix console. In a recent interview, she stated that the company is not ready to announce a launch timeline amid the dynamic market conditions. Sharma emphasized focusing on factors within Xbox's control.

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New Xbox CEO Asha Sharma outlined her vision for the platform in a Bloomberg Tech Live interview. She addressed the balance between exclusive content and broad game distribution.

New Microsoft Gaming CEO Asha Sharma informed staff in an internal memo that Game Pass has grown too expensive for players and requires changes. She described the service as central to Xbox gaming value but stressed the need for a better value equation in the short term and a more flexible system long term.

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Microsoft's Xbox hardware revenue fell 33 percent year-on-year in Q3 FY2026, despite overall company revenue rising 18 percent to $82.9 billion. Gaming revenue declined seven percent, prompting Xbox leaders to pledge renewed focus on core fans. The firm recently cut Game Pass prices in response to customer feedback.

Xbox VP Jason Ronald confirmed on April 21 that Project Helix will launch as a first-party console, quashing rumors it would only be chips for third-party makers like ASUS and MSI. This follows CEO Asha Sharma's March announcement of the next-gen device.

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Gaming hardware prices are expected to keep climbing in the coming years due to rising component costs and other factors. Industry experts point to increased demand for RAM from AI data centers as a primary driver. They also cite tariffs, inflation, and geopolitical issues as contributing elements.

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