Microsoft is reportedly developing its next-generation Xbox console, codenamed Project Helix, with a planned release for the 2028 holiday season. Internal estimates suggest the device could be priced between $1,200 and $1,800, unless the company decides to subsidize the hardware costs.
The development roadmap also includes a new handheld gaming device scheduled for release by the end of the 2027 holiday season. Microsoft has indicated that hardware will be available to developers starting in 2027, with the new console offering compatibility for both Xbox and PC titles.
Internal discussions within Microsoft have highlighted disagreements regarding the software platform for the upcoming handheld. The Windows division proposed a stripped-down version of Windows Home, while the Xbox team, led by CEO Asha Sharma, aims to develop proprietary software to optimize gaming performance.
The company is also planning significant changes to the Xbox Game Pass subscription model. Future updates may allow users to select specific features, such as cloud gaming or multiplayer access, on an a la carte basis to address rising hardware costs and evolving market demands.
Rising component prices have impacted the industry, with reports noting that memory and storage costs for the upcoming PlayStation 6 could exceed $680. In response to these trends, Microsoft has already increased prices for the current Xbox Series S and X consoles by up to $150.
