Along with consumers, hardware manufacturers continue to feel the effects of AI data center-fueled demand. Memory and storage shortages mean massively ramped-up prices. Xbox CEO Asha Sharma highlights in a new open letter that its console storage component costs in February were “over 2x as high” as they were last fall, and these costs have since doubled.

Now, Xbox expects these costs to jump to 5x. Anyone who has shopped for PC hardware lately will see just how much more expensive RAM and SSDs have become in the past 9 months or so. DDR5 RAM is the biggest offender – prices really aren’t getting any better, with AMD chiming in recently to suggest they may be back to normal in around two years from now.

Xbox CEO addresses RAM and SSD price hikes ahead of holiday 2027

We are in a hardware component crisis. When I joined as CEO in February, the price we paid for console storage components was over 2x as high as we paid last fall. These costs have since doubled again. And as we plan for the 2027 holiday season, we expect another significant increase, taking us over 5x the prices we paid only two years earlier.

Memory costs have followed a broadly similar trajectory.

While the entire industry is facing a components crisis, we believe we have been impacted more greatly than many of our peers due to the choices we made over the last half decade. We are currently unable to make as many consoles as players want to buy, and we need a new business model and partnerships for hardware as we remain committed to Helix.

Asha Sharma (CEO) & Matt Booty (CCO) via Xbox Wire

Aside from pricing, one key takeaway from the memo is Xbox’s “plan for 2027 holiday season”. This doesn’t immediately confirm anything, but may suggest the planned launch window for Project Helix. Previous projections we’ve seen pointed towards a 2027 or 2028 release, though any dates should be taken with a grain of salt until a more official announcement.

A few tidbits have surfaced regarding the next-gen Xbox machine, including the ability to play PC games, suggesting it’s some kind of PC-console hybrid. Xbox has long delivered content for both Xbox console and PC gamers to enjoy, and its new focus on exclusivity (in the case of Gears of War E-Day and Clockwork Revolution) means a stern step away from PlayStation launches.

The next big hardware launch on the Xbox calendar is the Xbox Series X25, named as such because it’s an Xbox Series X designed to celebrate the 25th anniversary of the original Xbox, featuring its iconic transparent green design. That will give something for enthusiasts to look forward to while we’re waiting for Project Helix, which we currently know very little about.

About the Author

Jack Goodall

At PC Guide, Jack is mostly responsible for reporting on hardware deals. He also specializes in monitors, TVs, and headsets and can be found putting his findings together in a review or best-of guide.