Xbox's next-generation console, codenamed Project Helix, may carry a price tag between $1,200 and $1,800, according to a recent report from Fortune. While Microsoft could opt to subsidize the cost, the projected hardware expenses suggest a retail price potentially exceeding $1,000 unless the company absorbs significant losses beyond typical industry standards. The report indicates that Xbox has accelerated engineering deadlines for Project Helix and is employing AI to enhance productivity and address performance challenges.
Alongside the next-generation console, Xbox is reportedly planning to launch a handheld device by holiday 2027. Xbox CEO Asha Sharma has previously referred to Project Helix as a "family" of devices, hinting that this handheld could be the first manifestation of this strategy. This approach may differ from previous generations, potentially utilizing less powerful hardware in the handheld to achieve a more accessible form factor, rather than offering a lower-spec console alternative.
Further details about Project Helix are expected later this year, potentially coinciding with Microsoft's 25th-anniversary Xbox celebration in November. This upcoming hardware generation may see a significant shift in console pricing. Neighboring platform holder PlayStation is also rumored to be developing its own handheld companion, and reports suggest the PlayStation 6 could also face a substantial price increase. One recent rumor indicated that the RAM and storage alone for the PS6 could cost approximately $680, raising expectations that the console's final price may approach or surpass $1,000, similar to the projected cost for the next Xbox. The era of affordable console hardware may be drawing to a close, with uncertain prospects for future price reductions.