TechCapsules

AI-summarised brief · reviewed before publication

Microsoft's Xbox CEO Asha Sharma has announced a shift in focus away from premium consoles due to pressure on margins. Sharma stated that the console market has reached a point where mainstream consumers cannot be expected to spend thousands of dollars on a new console generation. Xbox will prioritize lower hardware costs, new business models, and exclusive content. The company faces pressure after spending over $20 billion on content, platforms, and hardware subsidies in five years, with annual revenue falling by almost $500 million. Sharma warned of a hardware component crisis, with console storage costs more than doubling since late last year.