The upcoming next-generation Xbox console, codenamed Project Helix, is reportedly projected to cost between $1,200 and $1,800 at launch, according to a new report from Fortune. This potential price point would make it the most expensive Xbox console ever released and significantly higher than current-generation hardware.
Microsoft has internally positioned Project Helix as a "very premium, very high end" device, comparable to a powerful gaming PC. The report suggests that this high price may only be avoided if Microsoft decides to subsidize the cost, a common practice for console manufacturers who recoup expenses through software and subscription sales. Project Helix is currently slated for a release sometime before the holiday season in 2028, later than some previous expectations.
Project Helix Handheld Development Disputes
Prior to the 2028 console launch, Microsoft reportedly plans to release a next-generation Xbox handheld device by the 2027 holiday season. This handheld is seen as an early iteration of the capabilities expected in Project Helix. However, the development of this handheld is apparently facing internal conflict. According to Fortune, the Xbox and Windows divisions are at odds over the device's software. The Windows team advocates for a stripped-down version of Windows Home, while Xbox leadership, including CEO Asha Sharma, aims to develop proprietary software for optimal gaming performance. These disagreements have reportedly become contentious enough that the next-gen Xbox handheld was nearly canceled.
Xbox's Broader Strategic Shift
These developments occur amidst a larger strategic realignment for Xbox, which has included significant layoffs within the gaming division and restructuring of its studios. The company is also exploring new initiatives such as Xbox XP and Xbox Labs, the latter focusing on generative AI in game development. Furthermore, a substantial overhaul of the Game Pass subscription service is rumored, moving away from a universal model to a more flexible, à la carte structure. With the projected high cost of Project Helix and ongoing organizational changes, Xbox faces considerable challenges in revitalizing its business.