Microsoft is reportedly developing a new gaming console, Project Helix, with a projected release date in 2028. Internal estimates suggest a price range between $1,200 and $1,800, though the final consumer cost may be lower if the company chooses to subsidize the hardware.

The project faces internal debates regarding its operating system. One faction advocates for a modified version of Windows Home, while the Xbox group prefers a bespoke system. Reports indicate that a high-level executive threatened to cancel the project if forced to use Windows, leading to the Xbox team gaining control over the OS development.

To accelerate the development timeline, Microsoft has instructed the hardware team to expedite the project by at least several months. The company is utilizing AI tools to assist in this process. Meanwhile, executives have denied rumors that the leadership changes within the Xbox division are intended to prepare the unit for a potential sale.