Xbox isn’t able to keep up with the demand for new consoles as a result of component shortages, which is prompting Microsoft to rethink the strategy for its next console.
While speaking at Summer Game Fest, Xbox’s Chief Strategy Officer, Matthew Ball, addressed the ongoing situation regarding the AI boom driving up prices on hardware, due to component shortages/price increases. Per GameSpot, Ball noted that the company isn’t able to meet demand for new consoles due to the current climate, but it doesn’t mean players aren’t hungry to purchase Xbox consoles.
“We are producing them as quickly as possible. These is a severe limitation to how quickly we can do that, but it’s not a question of appetite,” he said. “That is a prilvege as a company. It is a challenge for us to figure out.”
Naturally, Ball was also asked about what this means for the next Xbox console, Project Helix. There has been a lot of speculation about what it will cost, especially with components becoming increasingly expensive. He noted that the “crisis is not yet getting better” and that it is forcing them to rethink their strategy with Helix.
“We are working very hard to rethink everything that we can about Helix, which is a console we are committed to shipping,” he said. “We are very cognizant of the ways in which we need the change as a company to make sure it is affordable, to make sure that it’s flexible. We are working hard to rethinking what that console model can look like, not in an exclusionary way, but in an additive way, so that as we take a look at this crisis, which may have acute effects for 2-2.5 years.”
Ball went on to note that he also wants to find a healthy balance, so that Xbox can create strong and enticing value for newcomers, but also make sure current players feel rewarded for their loyalty.
“We are working very hard to figure out the best way to navigate it or a way that works for everyone, that does not ask too much from players,” he said. “We also have tens of millions of people who we ask to spend $500 which is still an incredible sum of money. Those people that we asked to buy a console years ago, we still have an obligation to them to meet their expectations and to have them feel rewarded for which platform they chose.”
Ball was also extremely transparent about the state of Xbox, noting that Game Pass lost “millions” of subscribers when the service raised prices last year. He went on to reveal that Xbox’s new CEO, Asha Sharma, bluntly asked him if Xbox was “fixable” when he was brought into the company earlier this year. Ball expressed optimism to her, noting that he believes they can improve the situation.
It’ll be an uphill battle for Xbox going forward as it attempts to define a path for exclusivity, works to win over players after painful price increases, and much more. On the upside, Xbox has a lot of promising games on the horizon with Gears of War: E-Day, Halo: Campaign Evolved, and Fable.
Cade Onder is a freelancer for IGN’s news team. He covers all things entertainment, including gaming, film, and more. You can find him on Twitter @Cade_Onder.
