Microsoft is reportedly accelerating development of Project Helix as it prepares its next generation of Xbox gaming hardware.
Microsoft's next-generation Xbox console could come with a hefty price tag, while a new handheld may arrive a year earlier. Microsoft's next-generation Xbox console, codenamed Project Helix, could reportedly cost as much as US$1,800 when it launches in 2028. The company is also said to be planning a new handheld gaming device for 2027, potentially giving Xbox players a new way to play before the next home console arrives.
The details come from a report by Fortune on Tuesday (20 October), which examines Microsoft's upcoming Xbox hardware plans under CEO Asha Sharma.
How much will Xbox's Project Helix cost?
According to Fortune, Microsoft has internally projected that Project Helix could cost consumers between US$1,200 and US$1,800. That's a hefty price tag for a gaming console, although the company could still choose to subsidise the hardware to bring down the retail price. The reported range is an internal projection, not a confirmed selling price.
As previously detailed during the Game Developers Conference (GDC) 2026, Project Helix is being developed in partnership with AMD and will feature a custom system-on-chip. The next-generation hardware is designed to run both Xbox and PC games, with improvements to ray tracing, performance, and graphical capabilities.
When will Xbox Project Helix and the new handheld launch?
Fortune reports that Microsoft is targeting the holiday season of 2028 for Project Helix, while a new Xbox handheld could arrive during the holiday season of 2027. It remains unclear whether the portable device will be part of the Project Helix family.
The reported handheld follows Microsoft's collaboration with ASUS on the ROG Xbox Ally devices, which brought a console-style gaming interface to Windows-based handhelds. Meanwhile, earlier reports about Project Helix suggested that the console would run on Windows while retaining access to Xbox's existing game library and potentially supporting PC storefronts such as Steam and Epic Games Store.
Fortune also reports that Microsoft's Xbox and Windows teams have disagreed over the handheld's operating system. While the Windows team reportedly pushed for a streamlined version of Windows Home, the Xbox team wanted greater control over the software to improve gaming performance. The Xbox division is now said to be largely overseeing its direction.
What else has Microsoft revealed about Project Helix?
Development of Project Helix is reportedly moving faster than initially planned, with Microsoft bringing forward engineering deadlines by several months. Teams have also been encouraged to use artificial intelligence (AI) to improve productivity, although Sharma told Fortune that Microsoft would not use "AI for AI's sake". Microsoft previously confirmed that alpha versions of Project Helix hardware will begin shipping to developers in 2027, with more information about its next-generation Xbox plans expected later this year.
The reported US$1,200–US$1,800 price range and the 2027 and 2028 launch windows have yet to be officially confirmed by Microsoft.
