Microsoft is exploring different bussiness models for the XBOX Project Helix

The console market could soon face a full-blown crisis. Prices continue to rise, and the next generation may feature consoles at prices never before seen in the industry.

Manufacturers appear to be aware of this issue. During an event organized by Fortune, Asha Sharma, the president of Xbox, was asked about this. She specifically described the current cost of components for the video game industry as a “crisis.” However, she also mentioned the need to implement “radically different business models” to make the next generation of consoles affordable for consumers.

“Look, on hardware, we are in a crisis right now. The entire industry is. There’s a shortage of memory and storage, and the costs are exponential. They are usually at this point in the generation, about 50% of the cost, and we’re seeing they’re up 2.75x, they’re up 50% since they started, they’re going to be up effectively 7.5x.

Pricing is a lever, of course, but we must think about other options as well. We must think about other ways to think about the cost construction of the console. We must think about how we create different plans so more people can participate in the console.

We must think about the cost construction of consoles and how we create different plans, partnerships that will allow us to have better distribution, and experiences that we’re creating outside of that to reach new audiences.”

While Sharma did not elaborate on her plans to make Project Helix more affordable, she did note that focusing exclusively on high-end, more powerful consoles will not be the solution. She said she is aware that the general public will not spend several thousand dollars to buy such a machine.

Finally, the head of Xbox confirmed once again that Microsoft’s next console will be capable of playing PC games.