Microsoft's next wave of Xbox hardware may arrive in two steps. According to a new Fortune profile of Xbox CEO Asha Sharma, published October 20, Sharma plans to release "a next-generation handheld device" by the 2027 holiday season and the next Xbox console by the holidays in 2028.
Microsoft has not officially announced release dates or pricing for either device. Shacknews notes that while Sharma was interviewed for the profile, the details about unannounced hardware come from anonymous sources.
A projected $1,200 to $1,800 price
The biggest number in the report is the price. Fortune writes that the Project Helix console "has internally been projected to cost consumers between $1,200 and $1,800, unless Microsoft decides to subsidize the cost."
Ars Technica points out that the range comes as gaming hardware prices are already climbing. It notes that the Steam Machine launched above $1,000 this year, the PlayStation 5 Pro now sells for $900, and the Xbox Series X now starts at $750. Engadget connects the projected price to rising costs for RAM and other components tied to demand from AI.
What Project Helix is
Microsoft first announced Project Helix in March, describing it as a device that will "play your Xbox and PC games," according to Ars Technica. Sharma has also described Helix as a "family of devices," which The Verge reads as a sign that the next Xbox may not be a single piece of hardware.
The Verge also notes that Microsoft and AMD announced a "strategic multi-year partnership" last year covering "a portfolio of devices," including Microsoft's next-generation console. Fortune's report does not say whether the handheld would be built by a partner like ASUS, which made the ROG Xbox Ally handhelds, or by Microsoft itself.
An Xbox vs. Windows software clash
Fortune reports that the Xbox and Windows teams have clashed over what software should run Project Helix. According to the report, Windows leaders wanted the upcoming handheld to use a trimmed-down version of Windows Home, while Sharma's team wanted to build and control its own software for gaming performance.
Citing people briefed on the dispute, Fortune says a senior Xbox executive threatened to scrap the handheld project rather than adopt the Windows build. Xbox is now "largely controlling the direction of the operating system for the project," Fortune writes, though Sharma told the outlet the teams still collaborate closely: "We can't build Helix on our own."
Ars Technica adds that, according to Fortune, Microsoft has pushed the hardware team to move up Helix timelines "by at least several months," in part by using AI tools where possible.
Game Pass and layoffs
The profile also covers Xbox's subscription plans. Citing people familiar with the strategy, Fortune reports that Xbox is planning a major Game Pass overhaul that would let players choose features à la carte, including add-ons for console-only games, cloud gaming and multiplayer, in a tiered structure. The report does not include a timeline or pricing.
Fortune also reports that Sharma is planning another round of Xbox layoffs this month, followed by more in November and January, according to The Verge and Engadget.
The bigger goal
According to Fortune, Xbox has around 100 million daily active users today, and Sharma has set a long-term goal of reaching more than 1 billion people a day. "We're not here to do the minimum viable thing to just have a good business," Sharma told Fortune. "We're here to be the No. 1 entertainment company."
Fortune also addresses speculation among some current and former staff that Xbox could be spun off and sold. Microsoft executive Judson Althoff pushed back in the profile: "We would not have put [Sharma] on a business we intend to sell."
Sources
- Fortune: The non-gamer CEO racing to save Microsoft's Xbox
- The Verge: Microsoft reportedly plans Xbox handheld in 2027, next-gen console in 2028
- Ars Technica: Microsoft reportedly projects $1,200 to $1,800 price for 2028 Project Helix
- Engadget: The next Xbox might cost $1,800, report says
- Shacknews: Xbox reportedly planning a handheld for 2027, Project Helix for 2028
