"All of the industry needs to start to innovate on affordability and efficiency" - Xbox's Asha Sharma wants change and "more choice" for people buying consoles

Microsoft's Xbox boss Asha Sharma has called for the entire gaming industry to focus on making consoles more affordable and efficient in the face of skyrocketing component prices. At the BBC, Sharma stated that "all of the industry needs to start to innovate on affordability and efficiency." She explained that the current crisis in hardware and components has forced the industry to rethink how they approach console pricing and design.

Sharma emphasized that Xbox is committed to considering factors such as hardware efficiency, price per unit, and component choices in its next-generation console development. The primary driver behind the current high prices is the surge in demand for memory and storage chips in AI data centers, which has significantly impacted console prices.

Microsoft recently announced a price increase for its Xbox consoles, with a 512GB Xbox Series S now priced at £430 (originally £250) and a 1TB disc-drive Xbox Series X at £670 (originally £450). Sharma hinted that Microsoft is exploring new ways to sell Xbox consoles, potentially moving towards more flexible business models like the monthly payment plan they previously offered with Xbox Series X/S.

Sharma also mentioned that Sony's PlayStation 6 could have a bill of materials cost of nearly $1000. She suggested that the industry might need to reconsider the idea that more power always equals a better console, and that finding ways to optimize performance and efficiency could be a positive direction for the future. This could involve innovative approaches similar to Nintendo's past innovations, which have focused on maximizing the potential of the available hardware without simply increasing power.