Microsoft Corporation is accelerating the development of its new generation of Xbox gaming hardware under the leadership of new CEO Asha Sharma. According to a report by Fortune, the company's next home console, codenamed Project Helix, could cost between $1,200 and $1,800, while the release of a new handheld device is expected as early as 2027.
Internal financial projections at Microsoft point to a significant increase in the future console's cost, driven by rising component prices due to the AI boom. The stated price range is preliminary and could change if the company decides to subsidize part of the cost for consumers.
Project Helix is being developed in partnership with AMD and will be based on a custom system-on-chip (SoC). The new hardware will run on the Windows operating system with the ability to launch both console and PC games, including potential support for third-party storefronts (Steam and Epic Games Store). The console will feature improved ray tracing and enhanced graphical performance, with alpha versions scheduled to be shipped to developers in 2027.
The launch of the Xbox handheld device is expected by the 2027 holiday season, while the Project Helix home console is planned for late 2028.
During the creation of the portable system, disagreements arose between the Windows and Xbox teams: the former proposed a streamlined version of Windows Home, while the gaming division insisted on greater software control to optimize performance. As a result, the Xbox team took the lead in the development direction.
Alongside the hardware updates, Microsoft is preparing a massive overhaul of its Game Pass subscription. The company plans to introduce a multi-tiered structure on an à la carte basis, where users will be able to choose the options they need themselves.
The customizable subscription will include:
Exact timeframes and financial details of the revamped Game Pass have not yet been announced, but this model is expected to become one of the tools for attracting audiences back to the Xbox ecosystem.
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