Xbox to focus on "efficiency and affordability alongside performance" for next-gen console amid rising hardware costs and innovations in AI

GamesIndustry.biz reports Xbox is prioritising “efficiency and affordability alongside performance” for its next-generation console as hardware costs rise and AI changes the platform landscape. Asha Sharma said the industry now has to think harder about price, component choices, and how players purchase hardware, not just raw specs.

For developers, the interesting part is that Xbox is framing next-gen design around hardware efficiency as much as capability. Sharma pointed to storage, memory use, and price per unit as factors in Project Helix, which suggests the platform’s future hardware strategy may lean into smarter tradeoffs rather than simply chasing bigger numbers.

She also touched on Microsoft’s broader AI push, saying the technology is “fundamentally changing a lot of things,” while stressing that Xbox wants “art made by people.” Matt Booty added that teams are free to use AI where it helps production, including code assistance and bug checking, but not as a replacement for human-made games.

Sharma also referenced Xbox’s restructuring, including 3,200 layoffs and the divestment of five internal studios, saying the changes were meant to position the business for the next 25 years. The exact hardware configuration for Project Helix, including whether it will include a disc drive, remains undisclosed.