Microsoft plans Xbox handheld for 2027, Project Helix for 2028

Fortune reports that Microsoft plans to release an Xbox handheld by the 2027 holiday season and the Project Helix next-generation console during the 2028 holiday season, citing unnamed company sources.

Xbox CEO Asha Sharma spoke with Fortune for the report, but the specifics on Microsoft’s unannounced next-generation plans came from unnamed company sources. Sharma has characterized Microsoft’s next generation as a family of devices. Microsoft plans to release the handheld ahead of the 2028 console launch.

Fortune reports that the next-generation Xbox hardware carries an internal consumer price projection of between $1,200 and $1,800, with the final cost potentially lower if Microsoft subsidizes the console. That range comes from what Microsoft has internally projected at the company.

Microsoft formally revealed Project Helix in March 2026 as an AMD-developed next-generation system designed to run Xbox and PC titles. At GDC in March, Microsoft said the next-generation console will run Xbox and PC games and reach developers starting next year. Fortune reports that Microsoft is considering changes to Xbox Game Pass that would let subscribers select individual features and add-ons such as cloud gaming and multiplayer access.

The Windows division pushed for a handheld running a scaled-back Home edition of Windows, whereas the Xbox group under Sharma wanted to develop and manage its own software to optimize gaming performance. A senior executive threatened to scrap the handheld project entirely if Microsoft required the device to run Windows, according to Fortune’s reporting.

Microsoft reportedly plans to send alpha hardware to developers in 2027, targeting an optimistic fall 2027 launch window that could coincide with the PS6.

Video Games Chronicle reports that storage and memory parts for Sony’s PlayStation 6 will cost the company over $680 for each console, citing reports from last week. The outlet reported this alongside analyst debates about whether next-generation consoles would retail for over $1,000, given component shortages driving up consumer electronics costs.

Joost van Dreunen, CEO of Aldora, told GamesIndustry.biz that he believes new consoles will certainly cost more than $1,000, with the next generation potentially not arriving until 2028. Video Games Chronicle reported van Dreunen’s warning that at the current rate, north of a grand is the floor for next-generation consoles, and existing devices are already getting marked up.

Ars Technica notes that cutting-edge gaming hardware just isn’t as cheap as it used to be because of the slowdown in Moore’s Law and AI-driven component shortages. The outlet points to the Steam Machine breaking the $1,000 starting price this year, the PlayStation 5 Pro selling for $900, and the Xbox Series X starting at $750 as examples of historically high console pricing. Ars Technica says this reflects a new normal while noting a $1,200 starting price would be historically high even accounting for inflation.

Insiders like Moore’s Law Is Dead expected an MSRP of at least $1,000 for the Project Helix hardware. Notebookcheck reports this alongside internal estimates between $1,200 and $1,800. The outlet says it’s unclear whether the gaming business would absorb losses on Helix given industry struggles.

Asha Sharma mentioned affordability strategies including using RAM and SSD more efficiently and creative financing. Notebookcheck reports this as part of pricing concerns, noting it’s unclear whether the gaming business would absorb losses on Helix given the gaming business’s struggles.

Microsoft announced it was raising the price of Xbox Series S and X by up to $150. Video Games Chronicle reports this alongside Microsoft introducing Buy Now, Pay Later options through Microsoft Stores to help make consoles more affordable. The company warned it needs to consider new business models to cover rising hardware costs.