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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 is weighing subsidies as rising memory and storage costs push the next Xbox’s projected price as high as $1,800.

  • According to a new report from Fortune, Microsoft reportedly plans to launch an Xbox "next-generation handheld device" for the 2027 holiday season, followed by a next-generation home console in holiday 2028.
  • Xbox CEO Asha Sharma described Project Helix as a "family of devices," suggesting Microsoft's upcoming hardware rollout involves multiple connected units rather than a single console.
  • Internal projections estimate the Project Helix console could cost between $1,200 to $1,800 without subsidies, while Microsoft navigates an ongoing "turf battle" between Xbox and Windows teams over the operating system.
  • Facing high manufacturing costs, Microsoft may struggle to maintain the "affordability" Sharma identified as a key challenge, especially as the company reportedly plans a fresh round of layoffs this month.
  • While platform leaders maintain that "console" remains "core" to Microsoft's gaming business, industry trends suggest the age of affordable hardware may be ending as component prices continue rising through 2027 and 2028.
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A report by Fortune revealed some price assumptions for Project Helix, the next generation Xbox, which are very high.

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  • 60% of the sources are Center
60% Center

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TheGamePost broke the news on Tuesday, October 20, 2026.
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