Xbox CEO Asha Sharma would not give a definitive answer when the BBC asked whether Microsoft's next-generation console, referred to as Project Helix, will have a disc drive. Instead, she said, "This next generation, we have to be thinking about efficiency and affordability alongside performance." The question comes as Sony has already said new game discs won't be part of the PlayStation 6 generation, with PlayStation planning to end production of new game discs in 2028, a move that has upset some diehard fans.
Sharma pointed to a broader affordability crisis facing the industry. "All of the industry needs to start to innovate on affordability and efficiency. That is something that we have not had to do [previously]," she said. "But with the crisis that's currently happening in hardware and components, it is absolutely something all of us need to be thinking about and innovating on and giving people more choice in terms of how they play their console and how they purchase their console." She also acknowledged Microsoft's own role in rising component costs, saying, "AI is fundamentally changing a lot of things," when asked about the company's contribution to the tech pricing spike driven by the AI boom.
Disc drives add cost to console manufacturing, and fears of consoles priced at $1,000 or more have grown amid rising memory and storage costs. The current Xbox Series X includes a disc drive, but the more popular Series S does not. According to research firm Circana, Xbox games made up just 4 percent of all revenue from new physical game sales in the U.S. so far in 2026, suggesting Microsoft may follow Sony in dropping discs for its next hardware generation.
At Gamescom, Xbox announced a new program to convert physical Xbox One and Xbox Series X/S game discs into digital licenses. The segment introducing the program began by referencing "a lot of discussion lately around ownership and rights to the games that you buy," a comment widely seen as directed at PlayStation amid its disc controversy. Xbox's head of next-gen, Jason Ronald, said, "Even as technology changes and formats change, your library shouldn't."
Sharma said she wants to preserve choice for players who value physical media. "I know players love physical media, and I know there's a lot of benefits in digital media, and I want to make sure people have a choice," she said, noting that "there are stacks of games on everybody's shelves." She also emphasized Microsoft's history of supporting backward compatibility, saying, "We've long pioneered backwards compatibility and so you'll continue to see that as we go forward in the generations." Whether Project Helix itself will include a disc drive, however, remains unconfirmed.