Report: Next Xbox Project Helix Could Cost Up to $1,800

Microsoft’s next-generation Xbox console, internally codenamed Project Helix, could cost consumers between $1,200 and $1,800, according to a report from Fortune. The publication states that these figures represent Microsoft's internal projections, "unless Microsoft decides to subsidize the cost."

Pricing and Release Timeline

The report indicates that Project Helix is scheduled to launch before the holidays in 2028. This timeline is later than some previous expectations. The potential price point would make it the most expensive Xbox in history. For context, the current PlayStation 5 Pro is priced at half the upper end of the projected range for Project Helix.

Microsoft has previously confirmed that Project Helix will play "your Xbox and PC games." The company has positioned the device as a "very premium, very high end" product, similar to a powerful gaming PC. Rising component costs have been cited as a factor in the potential price increase. Xbox CEO Asha Sharma has warned of increased costs, and industry analysts have debated whether next-generation consoles would retail for over $1,000 due to global component shortages.

Internal Disputes Over Software

The Fortune report alleges that Microsoft’s Xbox and Windows teams are divided over the software strategy for the next-generation Xbox handheld, which is planned for release by the 2027 holiday season. According to the report, the Windows team wants the handheld to run on "a trimmed-down version of Windows Home." In contrast, Sharma’s team wants to "build and control its own software to get the best gaming performance."

The report claims that tensions have escalated to the point where Xbox leadership threatened to cancel the next-generation handheld entirely. Microsoft and Asus previously released the Xbox Ally handheld in October 2025, with models priced at $600 and $1,000. The report describes the Xbox Ally as "essentially an early version of what the next Xbox is going to be like."

Broader Xbox Restructuring

Microsoft is currently undergoing a significant restructuring of its gaming division. This includes thousands of layoffs and a reworking of the structure of Xbox Game Studios. The company has also announced new initiatives, such as Xbox XP and Xbox Labs, a team focused on generative AI-powered game development.

Additionally, Xbox is reportedly working on an overhaul of its Game Pass subscription service. The new structure is expected to move away from a one-size-fits-all model in favor of a subscription that allows players to "choose features à la carte," including add-ons for cloud gaming and multiplayer. Microsoft recently raised the price of Xbox Series S and X by up to $150 and introduced Buy Now, Pay Later options to help make consoles more affordable.

Why it matters

The projected price range for Project Helix highlights the financial pressures facing the gaming hardware industry. If Microsoft proceeds with a price tag up to $1,800, it will significantly alter the market landscape for home consoles. The internal conflicts between the Xbox and Windows divisions regarding software control suggest ongoing challenges in unifying Microsoft's gaming ecosystem. These developments occur amidst a broader industry trend of rising hardware costs and shifting subscription models.

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Sources

• polygon.com: Next-gen Xbox Could Cost Up to $1,800, New Report Says
• videogameschronicle.com: Report claims next Xbox is targeting 2028 and could cost between $1,200 and $1,800 | VGC

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.