Windows Central Podcast: The path ahead for Xbox with Jez Corden

Developer July 5, 2026No Comments

On this episode of the Windows Central Podcast, Zac and senior Xbox editor Jez Corden sit down to discuss the current state of Xbox, and where the business is headed.

It has been a wild month since Asha Sharma took the reins as Xbox CEO. While the team has been working to re-capitalize the brand and bring back some big-name exclusives, the narrative over the last week has taken a sharp negative turn. Between heavy rumors of Microsoft looking to sell off or close down certain first-party studios, console price hikes hitting shelves, and a massive rethink of what the next-gen hardware looks like, we wanted to figure out what’s actually going on with Xbox as a business.

In this episode, we break down the brutal economic realities hitting the industry. From the “RAM apocalypse” destroying console profitability to how free-to-play giants like Fortnite and Roblox have completely upended the old hardware subsidy model. We also look ahead at the next-generation “Helix” console, discussing whether Microsoft can actually deliver on its open Windows/Steam ecosystem vision if the hardware costs a grand, and what Sony’s shift away from physical media means for the future of discs.

[01:34] Podcast Introduction
[03:17] The State of Xbox Leadership & Business Health A look at the whirlwind of changes under new Xbox CEO Asha Sharma, transitioning from the strategy of Phil Spencer and Sarah Bond, and balancing last year’s record profits with the harsh reality of incoming corporate cuts.
[06:42] Microsoft-Wide Headcount Reductions & AI Capital Spending Discussion on how massive investments into Artificial Intelligence infrastructure are forcing headcount reductions and belt-tightening across all of Microsoft, including Azure, Surface, and Xbox.
[11:34] Studio Closures, Sales, and the Fate of Big IP Jez discusses rumors regarding potential studio sales or closures (such as Ninja Theory and Undead Labs) and how Microsoft is trying to find buyers to save projects like State of Decay 3 rather than flat-out canceling them.
[16:37] Is Xbox Becoming a Subsidiary? The hosts debate the pros and cons of Microsoft potentially spinning off Xbox into a more independent subsidiary, drawing comparisons to how LinkedIn and Skype were handled.
[22:55] ‘Ramageddon’ and the Broken Console Subsidy Model How skyrocketing RAM and component prices mean both Microsoft and Sony are losing hundreds of dollars per console. The hosts explain how the rise of casual, non-monetizing players on free-to-play games has broken the traditional model of selling hardware at a loss.
[28:32] The Death of Physical Media & Disc-less Futures Analyzing Sony’s shift away from physical disc drives and predicting whether the next-generation Xbox Helix will completely eradicate physical discs due to supply chain economics.
[30:54] Next-Gen Consoles: Power, Pricing, and Lifespans A realistic projection of what the PlayStation 6 and Xbox Helix will look like, predicting premium price tags ($1,000+) and a much longer cross-gen lifespan for the Xbox Series X/S.
[34:58] Xbox Helix: Open Windows Platform vs. Closed Box Jez outlines the original plan for Helix to function as an open Windows device supporting Steam, and how Microsoft’s new Chief Strategy Officer, Matthew Ball, is rethinking that approach due to the financial risk of players buying the hardware but only spending money on Steam.
[43:31] Grandfathering the Series X/S Family Exploring the possibility of the next generation skipping clean architectural cut-offs, instead grandfathering the Series S and Series X as budget tiers alongside the premium Helix.
[52:12] The Unsustainable Cycle of AAA Game Development Zach and Jez express frustration over 6+ year development cycles, ballooning West Coast production budgets, and why smaller global studios (like Bloober Team) are building games more efficiently.
[57:35] Code Name ‘Positron’: Xbox Disc-to-Digital Tech Jez details a leaked upcoming platform feature that allows users to insert a physical disc once, permanently claim a digital license to their Microsoft account, and only lose it if that physical disc is registered by someone else.
[01:04:12] Redemption of the 2013 Xbox One Vision A retrospective on how the highly criticized 2013 Xbox One vision (all-digital, heavy DRM, licensing pools, multi-media focus) was actually correct, just poorly messaged and ahead of its time.