Xbox Official Price Update Has Gamers Worried

As the next generation of consoles approaches, we recently got some insight as to the potential price range of the next Xbox system. Right now referred to as Project Helix, it seems like the next console was intended to have a pretty hefty price tag. Comments made by Xbox CEO, Asha Sharma, allude to prices unheard of by any previous generation. There are several factors at play here, creating such a potentially high price for the system.

In a message to Xbox employees, Sharma writes about the problems facing the development of new consoles. According to Sharma, the ballooning costs of storage components has caused Xbox to have to spend two times what they previously spent, and she suspects this will increase to five times soon. In an interview with Fortune, Sharma discusses the impact that AI data centers are having on component costs. She also drops a bit of a bombshell when she alludes to the idea of consoles costing “thousands of dollars.”

Now, in the context of the interview, Sharma was saying that Xbox will need to pivot their current strategy, as she doesn’t think players will be able to afford a console that expensive. Although this hopefully means that Project Helix, whatever it is, won’t be anywhere near that expensive. However, this didn’t stop players from having concerns over the idea of a thousand-dollar or more console.

In a Reddit thread discussing Sharma’s comments, players speculate what the original cost of Project Helix may have been. One user, HeartInTheSun9, even hypothesized that it “had to have been way closer to $2000,” if it was meant to emulate the power of a gaming PC. Another user, paqman3d, agrees that “[t]here’s no way it wouldn’t be near $2k,” given the increases in component costs.

Now that Xbox is shifting gears away from such an expensive console, players are worried about what tactics might be used to cut the cost. User skar220 shared concern that there will be “subscriptions everywhere” as a way for companies to recoup some of the losses they have to take to make consoles more affordable.

JTMx29 suggests what sounds like a reasonable solution, having Xbox “scrap the PC hybrid” idea that was the original concept for Project Helix. Although this would likely help lower the cost of the components needed to create the new console, it does also mean losing what made it revolutionary to begin with.

As AI data centers continue to spread, causing component costs to rise, it’s an unfortunate truth that we can probably expect more negative impacts like this in the world of gaming. Xbox isn’t the only company that will feel the hurt of these ballooning prices, and those costs will likely get pushed off onto players in the form of more expensive consoles. As AI becomes the villain of yet another story, I think it’s worth considering if things like LLMs are really worth the negative impact they are having on peoples livelihoods, and now their hobbies as well.

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November 15, 2001

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