CEO Asha Sharma hints at cheaper new Xbox console in 2026 to tackle rising prices

In a Fortune interview, CEO Asha Sharma addressed the affordability issue. While the executive commented on the upcoming Project Helix, she also teased a product for 2026. A new Xbox console could potentially debut that minimizes the impact of rising storage and memory prices.

Sharma was asked how Microsoft would boost sales during the component shortage. She admitted that the industry was in a crisis, with SSD and RAM costs up 50% since she took over. Sharma mentioned finding creative ways to “think about the cost construction of the console.” Those could include “radically different business models that we never expected to start to come into orbit later this year.”

The “later this year” wording is what has drawn the attention of observers. A Project Helix release date looms in 2027 or 2028, but there haven’t been rumors about a new Xbox console arriving sooner. Tom Warren of The Verge speculates that the CEO could be referring to xCloud. However, that portion of the conversation was hardware-oriented.

A radically-different Xbox console?

Another theory is that Microsoft will unveil a cloud-focused gaming machine. The disc-less Series S was more accessible before multiple price increases. Yet, even with a lower-capacity SSD, discounting it has become challenging. A revision that’s focused on Xbox Cloud Gaming would need less storage, memory, and processing power.

The alternative business model may also revolve around subscriptions. In the UK, the defunct All Access program provided buyers with a system at no upfront cost. Instead, a monthly fee covered both Game Pass and the hardware. After 24 months, a customer would then own a Series X or S. It may be more appealing now in this difficult economic climate.

Even if gamers don’t see a new Xbox console in 2026, Sharma could apply the same strategy to Helix. In a recent Bloomberg interview, she promised to innovate to keep the hybrid's price reasonable. Sharma has now provided some details on what those measures might entail. Among the options are “flexible storage offerings” or “new types of games” that take up less hard drive space.