
Xbox CEO Asha Sharma sent an internal memo to employees warning that the company is facing a 'hardware component crisis' driven by surging storage and memory costs. According to the memo, the price Xbox pays for console storage components was already more than double the previous fall's cost when Sharma joined as CEO in February — and has since doubled again. The company expects to be paying more than five times as much for key components as it did two years ago by the 2027 holiday season. Xbox says it cannot produce enough consoles to meet current demand.
xbox ceo asha sharma sent an internal memo telling employees the company literally can't make enough consoles. storage component costs were already 2x what they paid last fall when she took over in february — and they've doubled again since. by the 2027 holiday season they expect to be paying more than 5x what they were paying two years ago. the memo calls it a 'hardware component crisis.'
Fills the gaming coverage gap with a specific, high-stakes industry story sourced from an internal memo — the 5x cost figure and 'hardware component crisis' framing are concrete claims, and the single Dexerto source is reporting on a document rather than speculation, though we lack the memo itself or a second outlet's corroboration.
This is the first time a sitting Xbox CEO has publicly framed component shortages as a crisis rather than a temporary supply constraint. The cost trajectory — from 2x to 5x in under two years — suggests console pricing pressure that could reshape Microsoft's hardware strategy heading into the next generation cycle. Sony and Nintendo face the same component market, making this an industry-wide signal.
this is the first time an xbox ceo has called it a full crisis, not just a supply hiccup. costs going from 2x to 5x in under two years means console prices are going somewhere uncomfortable. sony and nintendo are buying from the same component pool — this isn't just an xbox problem.
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