Microsoft is reportedly developing a next-generation console under the codename Project Helix. According to Fortune, the device could retail between $1200 and $1800, unless the company decides to subsidize the hardware. Current profitability of the Xbox division is estimated at approximately 3 percent, which may limit the company's ability to lower the price.
The company aims to launch a new portable gaming device by the end of 2027, followed by the next-generation home console by the end of 2028. Engineering timelines for Project Helix have been reduced by at least several months. Internal disagreements occurred regarding the software platform, with the Xbox team successfully advocating for custom software over a stripped-down version of Windows Home.
Microsoft is also considering updates to the Xbox Game Pass subscription model. Potential changes include introducing tiered plans, such as options with or without advertisements, and expanding the service to include game expansions, cloud gaming, and multiplayer access. The impact of these changes on pricing and day-one game availability remains uncertain.
Asha Sharma, head of the Xbox division, plans to implement three additional waves of staff reductions. These layoffs are scheduled to take place in October, November, and January of next year.
