With increasing hardware expenses and advancements in artificial intelligence, Xbox plans to prioritize "efficiency and affordability alongside performance" for its next-generation console

Xbox is centering its future console development on "efficiency and affordability alongside performance" in response to increasing hardware costs and advances in AI technology.

In a discussion with the BBC, Xbox head Asha Sharma emphasized the industry's need to innovate regarding cost and efficiency. "This is something we haven't needed to focus on before," she noted.

She added, "Given the current challenges with hardware and component availability, innovation in this area is critical to provide gamers more options in how they access and purchase consoles."

Sharma did not specify if the next-gen Xbox, known as Project Helix, will include a disc drive. However, she highlighted Xbox's recent initiative allowing players to convert physical game discs into digital copies, as detailed in a feature by GamesIndustry.biz.

"We understand the value of physical media and the advantages of digital formats," Sharma said. "Our goal is to ensure gamers have a choice. Backward compatibility has been our focus, and it will continue to be as we evolve."

On the topic of AI, Sharma remarked on its transformative impact. Having previously led CoreAI at Microsoft, she assured that Xbox will integrate global trends to enhance player experiences.

For Project Helix, this translates to optimizing "hardware efficiency regarding storage and memory, cost per unit, components, and similar areas."

Sharma reiterated Xbox's commitment to quality AI, stating the company rejects "bad AI" and resists populating their ecosystem with inferior technology.

"Games are artistic creations by humans, developed with cutting-edge technology we provide," she affirmed.

Sharma and Xbox's chief content officer, Matt Booty, expressed that there is no pressure from Microsoft to integrate AI.

"Our teams can adopt any beneficial technology for tasks like coding or bug detection," Booty stated, reinforcing the commitment to preserving human creativity at the core of gaming art.

Sharma also touched on Xbox's restructuring efforts, which involved cutting 3,200 jobs, accounting for 20% of the Xbox division, and selling five in-house studios.

She clarified that these changes are essential "to ensure our viability over the next quarter-century while upholding our mission."

"Today's generation interacts with games differently, and new technology prompts adaptation. Xbox has experienced internal health challenges that we're addressing."