Phil Spencer is determined to ensure the Xbox Series X provides "the right value to customers".
The 52-year-old executive vice-president of Gaming at Microsoft has teased the launch of the new console, saying the company recognises the importance of price.
He said: "People find real value in the investment that they make in gaming.
"You can buy a console, buy some games, and it can literally provide your family with hundreds of hours of entertainment.
"Even when we went back and looked at 2008-09, in that recession, to see what the impact was on gaming - gaming did OK. It was durable.
"We want to make sure we're providing the right value to customers. Price is going to be important. But our strategy is centred around the player, not the device."
Spencer also admitted he can understand if some families choose to delay buying the console.
He told the BBC: "If this is not the year when a family wants to make a decision to buy a new Xbox, that's OK.
"Our strategy does not revolve around how many Xboxes I sell this year. We're focused on delivering services through Xbox Game Pass, which allows people to build their library for a monthly fee.
"Backward compatibility means that the console that they have will play thousands and thousands of games. Smart delivery means when they move to the next generation, the games will move with them."