Xbox CEO Admits AI Boom Is Why Consoles Cost More Now

Ever wonder why your next Xbox might cost as much as a used car? Well, you can thank the AI boom—and Microsoft's own hand in it. Xbox CEO Asha Sharma recently acknowledged the irony: the company's massive investment in AI has helped drive GPU prices sky-high, making consoles more expensive than ever. But instead of apologizing, she's celebrating.

In an interview with the BBC, Sharma said, "Gaming has always been a proving ground for the GPU. I think it is wonderful that there are more uses for this technology around the world." She added that AI is "fundamentally changing a lot of things," and Xbox's job is to "build the best experience for our players" while navigating this new reality.

Here's the kicker: the cheapest Xbox right now—the Series S—sells for $500, which is $200 more than its launch price in 2020. That's after multiple price hikes, and Microsoft has even suggested using Buy Now, Pay Later services or 0% APR financing to soften the blow. Ouch.

But Sharma insists the future is brighter. For the next generation, including the mysterious Helix platform, she says the team is thinking hard about "efficiency and affordability, alongside performance." And get this—Helix might not be a single console but a whole "family of devices." She teased, "We've been hard at work on a great next generation... and we'll share more soon."

She also hinted at bridging the gap between console and PC gaming, saying players could "play your PC games on your console." But she acknowledged the industry-wide hardware crisis is forcing everyone to innovate on cost. "That is something that we have not had to [before]," she admitted.

It's not just Xbox feeling the pinch. Sony has jacked up PS5 prices multiple times, and Nintendo is raising the Switch 2's price on September 1. Even so, Xbox saw a silver lining: US console sales recently doubled, and the $900 25th-anniversary translucent green console sold out instantly—proving some folks are willing to pay big for nostalgia.

So, what's your take? Are you okay with pricier consoles if it means AI powers your games, or is Microsoft just passing the buck? Will you be picking up the next Xbox if it's even more expensive, or is there a limit to your loyalty? Let us know in the comments!