Microsoft's Next Xbox, Project Helix, May Cost Up to $1,800

Microsoft's next-generation Xbox console, called Project Helix, may be very expensive. According to Polygon, Microsoft's internal estimates put its projected cost at as much as $1,800.

A Fortune report says Microsoft projects that Project Helix will cost consumers between $1,200 and $1,800, unless Microsoft subsidizes (lowers the price with company money) the cost. Microsoft has described the device as a "very premium, very high end" product. For comparison, the current price of a PlayStation 5 Pro is about half the projected top price of Project Helix.

Microsoft has confirmed that Project Helix will play both Xbox and PC games. Xbox CEO Asha Sharma has also warned of increased costs.

The Fortune report pegs the release of Project Helix for sometime before the holidays in 2028. Fortune also reports that Microsoft plans to release a next-generation Xbox handheld by the 2027 holiday season.

Microsoft and Asus released the Xbox Ally handheld in October 2025. It comes in a $600 version and a $1,000 Xbox Ally X version. According to Fortune, Microsoft's Xbox and Windows teams are divided over the software for the next-generation Xbox handheld, and Xbox leadership has threatened to cancel it.

Xbox is also going through a reset that includes thousands of layoffs in its gaming division. The company has announced a new team called Xbox Labs, which is reportedly focused on generative AI-powered game development. Xbox is also reportedly working on an overhaul of Game Pass that would offer more à la carte (pick-and-choose) subscriptions. Further Xbox layoffs are expected in the following months.