Microsoft Is Rethinking The Entire Xbox Business As Console Costs Surge
The AMD-powered Project Helix is a box that will be capable of running both PC and Xbox console games, which has been described as a premium device with high-end components. Of course, these plans have run into the reality of the chip and memory shortage, and it’s forcing the company to adjust what it ends up offering to customers alongside how it offers the new hardware.
“We must think about other ways to think about the cost construction of a console. We must think about how we create different plans, so more people can participate in the console,” said Sharma.
She added that it’s not feasible to offer a gaming device that costs north of a thousand dollars and expect it to be a hit with the mass audience consoles typically reach, not without exploring “radically different business models.”
One way of accomplishing a more affordable console is by cutting back on the components, with Sharma saying, “I think that we have to think very differently about storage and memory going forward.” However, it’s a risky maneuver because if Project Helix is nerfed too much then it might not be able to deliver the performance that can entice current Xbox Series X|S owners to upgrade or convert players gaming on other platforms.
Xbox can also look to its past for potential ways of making its next console more affordable. It used to offer customers Xbox All Access, which was a monthly payment plan that cost between $25 and $35 a month for either an Xbox Series S or X and included Game Pass. It could bring back this payment model with different pricing options without having to resort to cutting down Project Helix.
While many players won’t like it, another potential option is having the hardware be subsidized by ads. To be clear, that's not the current messaging by Sharma or Microsoft at large. That said, it's not unprecedented. Amazon does this successfully with its Kindle devices, so it’s not out of the realm of possibility that it could work with a gaming console. There are already signs of this being a legitimate option, as Sharma has noted that the company is exploring ways of working with services like Netflix to bolster its Game Pass subscription.
It will be interesting to see what path Microsoft ultimately ends up taking as it looks to offer Sony’s PlayStation more stiff competition in the next console generation.
