Xbox might transform the market with a more affordable new console later this year.

The head of the Xbox division, Asha Sharma, is leading during a challenging period. The rising costs of RAM and storage have forced companies like Microsoft, Sony, and Nintendo to raise console prices to record levels.

This price increase not only deters many gamers but also pushes Xbox to seek creative solutions to circumvent costs, and it seems they already have a strategy in mind.

Creative Strategies for Difficult Times

In a discussion with Fortune magazine, Sharma was asked about how Xbox plans to grow in the current crisis situation, where raising prices doesn't seem to be a feasible option.

"Look, in all these sectors there are no magic solutions," said Sharma. "We will have patience and take action, but it takes time to see results."

She admitted that the hardware situation is critical. "The costs are outrageous. Normally, at this stage of the generation, they would be at 50% of the initial cost, but now they have increased 2.75 times," she highlighted. "Yes, price is a lever, but we need to consider other options as well."

Innovative Business Models

Among these options, Sharma mentioned optimizing the console's production costs and creating "different" plans to include more players.

The Xbox All Access program, for instance, allowed players to acquire a console by paying a monthly fee without upfront costs, and although it had been discontinued, it might re-emerge given the current scenario.

Sharma also suggested a novelty that might arrive later this year.

"We will continue to explore new business models. I believe this is necessary for consoles, rather than focusing only on the most premium and high-performance console in the world," she said. "It's hard to imagine large audiences spending thousands of dollars on a generation of consoles, so I think we will see radically different models emerging later this year."

This new approach might include a hybrid console, cloud-dependent, saving on costly components.