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Xbox's Next-Gen Console Is Reportedly Targeting a 2028 Release, but Microsoft Expects It to Be Absurdly Expensive

Fortune says Microsoft may need subsidies to avoid near-$2,000 prices as component costs rise and Xbox faces a slow-growing install base.

  • According to Fortune, Xbox CEO Asha Sharma plans to launch a next-generation handheld device by the 2027 holiday season, followed by the next Xbox home console in holiday 2028.
  • Project Helix could cost consumers between $1,200 to $1,800 without subsidies, as Sharma called affordability a key challenge facing rising memory and storage expenses.
  • An ongoing turf battle between the Xbox and Windows teams complicates the project; Sharma emphasized, 'We can't build Helix on our own,' highlighting internal OS disagreements.
  • Microsoft has traditionally subsidized hardware between $100 and $200 per unit, but component prices rising in 2027 and 2028 make offsetting such costs uncertain for expensive machines.
  • Xbox is currently in a rebuilding phase with layoffs planned this month, yet platform leaders have repeatedly made clear that console remains core to Microsoft's gaming business.
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TheGamePost broke the news on Tuesday, October 20, 2026.
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