The price of an Xbox console today is higher than ever, and it was Microsoft’s own massive push into the AI space that led to this, at least in part. Xbox CEO Asha Sharma has now reacted to this ironic development, saying in an interview that she thinks it’s great that GPUs are being used for technology outside of gaming, even if it means Xbox consoles are more expensive than ever.
“Gaming has always been a proving ground for the GPU. I think it is wonderful that there are more uses for this technology around the world,” she told the BBC. “AI is fundamentally changing a lot of things. So our job as Xbox, as we continue on our next generation, is to take into consideration what’s happening in the world and build the best experience for our players.”
Following multiple rounds of price increases, the cheapest new Xbox–the Xbox Series S–now sells for $500, which is $200 more than what it cost at launch in 2020. Sharma said that for the next generation of consoles, including Microsoft’s Helix platform, the company will need to think more about “efficiency and affordability, alongside performance.”
Sharma also stated that Helix may not be a single device but rather a group of systems. “We’ve been hard at work on a great next generation, a great family of devices for Helix, and we’ll share more soon,” she said.
“We will of course continue to push the boundaries of performance. We’ve talked about being able to not only play your console games but also play your PC games on your console. I think in addition, all of the industry needs to innovate on affordability and efficiency. That is something that we have not had to [before].”
Sharma said the “crisis” currently affecting the market for hardware and components is creating a situation in whichMicrosoft needs to innovate to give players more choice in “how they play their console and how they purchase their console.”
For the latest Xbox price hike, Microsoft specifically directed people to consider using a Buy Now, Pay Later service or that they should buy a console through a provider offering 0% APR introductory financing. Microsoft also said people can buy a certified refurbished console to help get into gaming more affordably.
The most expensive Xbox console ever, the 25th-anniversary translucent green console, just launched at $900 and sold out immediately. Additionally, Xbox console sales in the US recently doubled, so there have been some positive signs for Xbox hardware lately, but the overall trends in hardware spending have been negative.
It’s not just Xbox facing these issues, of course. Sony has raised the price of the PlayStation 5 multiple times, too, while Nintendo will hike the price of the Switch 2 on September 1.
