In an interview with Eurogamer, Xbox's Phil Spencer says the company won't prioritize Project Scarlett's price over its hardware.

"If you remember at the launch of Xbox One, we were $100 more expensive and less powerful. So, I won't be in that position. There's no doubt about that," says Spencer. "As an industry that's growing so fast, we do think about price. We do think about performance as well. I'm not going to sacrifice performance for the sake of price."

Spencer also responded to a quote PlayStation's Jim Ryan gave about how they won't put their major first-party titles on PlayStation Now. Spencer says by having games such as Gears 5 and The Outer Worlds on Game Pass, it lets more players find those titles and try them out.

"I will say, from the launch of Xbox One, I've definitely learned that being too expensive and not powerful enough is not a great place to be," Spencer continues. "And price and performance are gonna be important, and we're very focused on both of those things."

Spencer also says that Xbox looked at streaming as a replacement for the game console experience. He says Microsoft's board doesn't mandate that they go towards streaming or console gaming. Instead, they want to focus on what'll make them "a global leader in gaming."

"Project Scarlett is the most important thing we're doing next year," Spencer says. "Leading in the console industry is something we want to do both in sales as well as leading in things like cross play, back compat, and Game Pass and all of the innovations we've brought in Xbox One. Yeah, we're going to continue to invest in cloud because we think it allows us to bring that experience to more and more people. But we're years away from that competing from a fidelity standpoint and a kind of feel for what people do on a local device."

Project Scarlett is set to launch later next year.