Next-Gen Xbox Could Be $1,800 And Launch In 2028 – Report

Microsoft is reportedly planning a significant overhaul of its Xbox hardware lineup over the next two years. According to internal projections revealed by Fortune, the company plans to release a next-generation Xbox handheld device by the 2027 holiday season, followed by a full console codenamed Project Helix launching in 2028.

The most noteworthy revelation concerns Project Helix’s projected cost: Microsoft’s internal estimates place the console’s price at $1,200 to $1,800, making it potentially the most expensive Xbox console ever released. However, Microsoft has indicated it could subsidize this cost to offer a lower consumer price point, a strategy historically employed by platform holders to drive adoption. When the Xbox Series X and S launched in 2020, Microsoft reportedly lost approximately $200 per console sold.

The high price tag reflects significant challenges in the gaming hardware industry. Rising memory and component costs, particularly due to ongoing shortages driven by AI demand, are contributing to the expense. Microsoft has positioned Project Helix as a “very premium, very high-end” device comparable to high-end gaming PCs, justifying the significant performance and capabilities consumers can expect.

Details regarding the handheld remain less defined. It’s unclear whether Microsoft will develop it in-house or partner with an OEM manufacturer like Asus, the company behind the Xbox Ally line. The console is expected to be a first-party Microsoft product running a specialized version of Windows.

Internally, the report notes that Xbox and Windows teams have disagreed over the operating system direction for the new console, highlighting potential tensions within Microsoft regarding the device’s focus on gaming versus broader computing experiences.

Sources