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By 2027, Xbox CEO Expects Hardware Costs to Be 500% Higher Compared to 2025

The head of Xbox is outlining the challenges the company has to face and the drastic price jumps for components is a major factor.

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As computer components continue to spike in price, Xbox has a bleak prediction about the cost of hardware in the near future.

The Future of Xbox Hardcore Manufacturing Costs Is Expensive

Asha Sharma took on the role of Head of Xbox just a few months ago in February 2026, but she’s already been moving quickly to change course and redefine the brand in a way that she feels better aligns with player demand and a realistic path towards profitability.

After lowering the price of Xbox Game Pass earlier this year and bringing back Xbox exclusives during the Xbox Games Showcase, she is now ready to outline the five realities that Xbox has to face in the next 100 days.

Among the other problems and opportunities she detailed in the memo, Sharma talked a bit about the increase in cost to product gaming and........

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