Xbox is about to make a major move in strategy following the revelations of CEO Asha Sharma regarding increasing cost issues in the gaming segment at Microsoft. In her address to the employees during a company briefing, Sharma highlighted a “100-Day Reset” plan to address profitability issues and other business problems that have been arising.
This news comes amid difficult times at Xbox as the firm makes heavy investments in the development of content and hardware in the face of a costly technological landscape.
Xbox CEO Asha Sharma Warns Storage Costs Could Rise 5x by 2027
One of the major issues highlighted by Sharma is the skyrocketing price of the hardware parts.
According to Asha Sharma, when she took up the CEO post in February 2026, the prices of the storage part were already twice as high as the prices last year. However, the prices have since doubled.
Now, Xbox believes that the prices of the storage part will be more than five times as expensive as before during the Christmas holidays of 2027. Prices for memory part are also on a rise, making things difficult for console production.
These rising prices are making the company reconsider its strategies regarding hardware production and logistics.
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The Xbox console has experienced greater difficulties because of the components shortage compared to other competing companies as a result of the hardware designs chosen in recent years.
The growing costs coupled with shortages have created issues for the company in meeting production requirements. For this reason, the company is considering different ways of securing its hardware roadmap.
The company feels that it needs to change its business model if it wants to survive in the market with rising production costs.
To improve efficiency, Xbox plans to simplify internal processes and reduce dependence on external vendors. The company aims to build greater operational independence while lowering production costs and improving long-term sustainability.
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