InterviewJun 12, 2026, 07:00 PM· United States
Xbox CEO Admits Unsustainable Hardware Gap, Memory and Storage Costs to Be Five Times Higher in 2027 Than Two Years Ago
Summary
Microsoft Xbox CEO Asha Sharma stated in an interview that the next-generation Xbox Helix faces surging memory and storage costs, which are expected to be five times higher in 2027 than two years ago. She acknowledged this hardware cost gap as 'unsustainable' and said it 'cannot continue.' Despite Microsoft's resources, the high component costs could impact the pricing and competitiveness of the next console.
Why it matters
This event involves Microsoft's gaming hardware cost issues, relevant to the company's strategy under CEO Satya Nadella, and may impact Microsoft's competitiveness in the gaming market.
Source links
- https://www.tomshardware.com/video-games/xbox/xbox-will-pay-five-times-more-for-components-in-2027-than-it-did-two-years-ago-ceo-asha-sharma-admits-theres-an-unsustainable-hardware-gap-that-cannot-continue
- https://www.theregister.com/security/2026/06/12/microsoft-has-mostly-repaired-a-flaw-in-surface-hardware-that-allowed-unprotected-devices-to-be-bricked-by-a-single-packet/5253895
- https://developer.microsoft.com/blog/spec-driven-development-ai-native-engineering
- https://www.tomshardware.com/tech-industry/cyber-security/microsofts-bug-hunting-nemesis-extends-vendetta-with-more-zero-day-attacks-nightmare-eclipse-publishes-rogueplanet-and-greatxml-local-privilege-escalation-exploits
- https://www.tomshardware.com/peripherals/controllers-gamepads/thrustmasters-new-specialized-t-flight-hotas-5-microsoft-flight-simulator-edition-provides-a-plug-and-play-flight-sim-setup-for-just-usd109-featuring-5-axis-control-with-16-bit-precision-and-dual-rudder-system
- https://www.theregister.com/security/2026/06/12/microsoft-has-mostly-repaired-flaw-in-surface-hardware-that-allowed-unprotected-devices-to-be-bricked-by-a-single-packet/5253895
- https://www.theregister.com/software/2026/06/12/github-outages-persist-as-ai-coding-drives-traffic-surge/5255125
Market reaction
Microsoft
NASDAQ · MSFT
