“The video game is unaffordable in many cases as we have traditionally conceived it”

Surely this is not the first time you have heard that the video game makes more money than cinema. That’s right, according to the data, although with certain nuances. However, the gaming industry is not having it easy right now, especially due to the situation with layoffs, the closure of studios, the component crisis or its difficulties in reaching a new audience.

Opinions. Asha Sharma, the new CEO of Xbox, has opinions on the matter, and assures that traditional gaming has become inaccessible to many. His statements come at a particularly delicate time for his own company. And he is right, since the component crisis and the state of the industry in general is making it increasingly prohibitive to buy hardware or games. But on the other hand, it is worth remembering that Microsoft is precisely a company that also contributes to the very poor state of this industry. We have the last example in the latest increase in the price of its consoles.

At the same time, it must also be said that we are at a point where we have more games (and very good ones) than ever, even titles that do not cost us any basic cost.

The traditional video game is in danger. In an interview with Entertainment Weeklythe CEO of Xbox said that the video game “is unaffordable in many cases, as we have traditionally conceived it.” It’s not just about the price of hardware, but also, as she noted, “the economics of attention and the competition of subscriptions.” It is a sum of factors important enough to be expelling players from their favorite ecosystems. Although Xbox has many more problems than that.

How is the panorama on Xbox. Sharma, who came from the world of AI, came to Xbox just a few months ago with no prior experience in the video game industry. That caused some rejection on social networks, but your first decisionsas recover Xbox name for Microsoft’s gaming division, give details of its next console, lower the price of Game Pass (still much more expensive than a few years ago) or returning (half-way) to console exclusives like Gears of War: E-Day, they have given it some credit.

Xbox wanted to believe that this year’s Showcase was going to become a moment of reaffirmation. However, weeks later the other side arrived: with an internal communication that the company itself made public, and that it spoke of a drop in income, the hardware component crisisand how it has been “overextended” in the execution of its strategy. Additionally, rumors are mounting about another wave of mass layoffs and studio closures, although Xbox has not officially confirmed them.

The problem crosses borders. That things are this regular is not something exclusive to Xbox. The entire industry suffers from structural tensions. Electronic components are more expensive than ever due to high demand for AI data centersand platforms compete for users’ time and money in an increasingly subscription-saturated environment.

In this context, the price of entry to play games, whether it is a console, a mid-range PC or simply keeping up to date with all the services, has skyrocketed. “It is a very difficult formula. It is a very demanding business, but I think it is a very special business” recognize Sharma.

Xbox’s bet to open the game. Todd Green, head of King (the company that owns Candy Crush that Microsoft acquired together with Activision Blizzard in 2023) explained in the same interview that his philosophy is to “treat everyone as important, regardless of whether they describe themselves as a gamer or not.” Candy Crush, with hundreds of millions of users, represents exactly that model, as it is an accessible title, free in its most basic form, and with no barrier to entry.

What is at stake. If we refer only to billing, and although the comparison is a bit petecanderthe video game far surpasses the cinema. According to the Entertainment Software AssociationAmerican consumers spent $60.7 billion on video games in 2025, compared to nearly $8.87 billion at the box office that same year. But those overall numbers don’t necessarily reflect what the average player experiences.

The challenge for Xbox, and the industry in general, is to find a way so that this growth is not concentrated only at the extremes, that is, the casual mobile gamer and the enthusiast with an unlimited budget, leaving everyone in the middle without a reasonable option.

What’s coming now? Sharma has made it clear that his vision for Xbox goes beyond consoles, as he wants to turn the division into the largest entertainment company in the world, and that also happens with adaptations of its franchises in film and television, as is already the case with Fallout and Minecraft, and coming soon with Gears of War either Sea of ​​Thieves. But first you will have to resolve many pending issues.

Cover image | Xbox

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