Xbox Helix Console Reportedly Headed for Holiday 2028 at $1,200 to $1,800

Microsoft's next-gen Xbox console could cost a lot more than anyone hoped. A new Fortune profile of Xbox CEO Asha Sharma says the Project Helix console has internally been projected to cost consumers between $1,200 and $1,800, unless Microsoft decides to subsidize it. For reference, the current Xbox Series X with a disc drive sells for $799.99, and that is after the recent price hikes. The report also says Sharma plans to release a next-gen handheld by the 2027 holiday season, followed by the console in time for the 2028 holidays. Apparently, Helix engineering deadlines have been moved up by at least several months, according to people familiar with the matter, which is putting extra pressure on development teams.

The handheld has also caused some friction inside Microsoft. Windows leaders reportedly wanted it to run a trimmed-down version of Windows Home, while Sharma's team wanted its own software for better gaming performance. It got heated enough that a senior Xbox executive reportedly threatened to scrap the handheld rather than ship the Windows build, though Xbox now seems to be steering the OS. Sharma, for her part, says the teams still work together, noting, "We can't build Helix on our own." Microsoft hasn't confirmed any pricing, and a subsidy could bring the final number down a bit. However, Fortune puts Xbox's profit margin at around 3%, which probably doesn't leave much room for one. Elsewhere, memory makers expect supply to get even tighter in 2027 and 2028, while rival Sony also struggles with rising costs, so a cheap next-gen console looks unlikely from either side.